Preparing for Mid-Terms

by Chris | October 11th, 2010

Traditionally, mid-term elections tend to attract fewer voters than presidential elections. It’s not clear whether 2010 will be different, but if voter enthusiasm is any guide, this year’s mid-terms could break with the past. A Gallup poll found that a majority of voters in every age group expressed at least some enthusiasm about voting in November (see chart).1

One reason for the enthusiasm could be because there are several key financial issues at stake this year. In some cases, your personal finances could be affected by the election outcome.

Tax Policy

A number of tax laws are set to expire after December 31. As a result, many tax rates are slated to revert to higher levels, especially for investors and high-income earners.

Although Congress could decide to extend the lower rates for some or all taxpayers, the federal government is facing trillions of dollars in mandated spending and a national debt that is growing at an unprecedented rate. Many experts believe the only way Congress will be able to meet these obligations is by raising taxes. Although the election outcome will almost certainly have an effect on near-term tax policy, it’s probably a good idea to expect tax rates to be higher in the future and to look for legal ways to help reduce your tax burden.

Stimulus Spending

Although the $787 billion Recovery Act continues to pump money into the economy, there is little agreement over the effect it has had on economic activity and the high unemployment rate. The White House maintains that the stimulus package is on track to save or create 3.5 million jobs by the end of 2010, but 62% of Americans and 73% of private-sector economists believe the spending has not helped create jobs.2–3 Some officials have warned that when the stimulus spending ends in 2011, there could be layoffs of state and local government workers because some of the money was used to avoid layoffs in 2009 and 2010.4 The debate over the effectiveness of using borrowed money to stimulate the economy could play a pivotal role in the election.

Health-Care Reform

The sweeping changes called for by the health-care legislation passed in March 2010 aren’t set to be fully implemented until 2014. Between now and then, look for health-care reform and its effects on the economy to be an ongoing political issue.

Regardless of your enthusiasm for participating in the upcoming elections, it’s important to consider how the 2010 mid-terms could affect your finances.

1) Gallup, 2010
2) Pew Research Center, April 28, 2010
3) CNNMoney, April 26, 2010
4) The Wall Street Journal, February 17, 2010

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2010 Emerald.

HBW Insurance & Financial Services, Inc.  
24240 Lyons Ave. Santa Clarita, CA 91321  
Phone: 661-877-8910 Fax: 818-848-4002  
www.HBWstability.com chris.lim@hbwsecurities.com  

 

Securities offered through HBW Securities LLC, Member FINRA/SIPC. 3355 Cochran St., Suite 100, Simi Valley, CA 93063, (800) 473-3856. HBW Insurance & Financial Services, Inc. is a separate entity from HBW Securities LLC. HBW Securities LLC does not give tax or legal advice. Chris Lim is a registered representative. Chris Lim is registered to sell securities in the following states (CA License #0G69788).

Although this agency is a part of the HBW Insurance & Financial Services, Inc. marketing system, it is a separate and independent agency.

274 Responses to “Preparing for Mid-Terms”

  1. This is my first time I have visited your site. I found a lot of interesting information in your blog. From the volume of comments on your posts, I guess I am not the only one! keep up the great work.

  2. I love your site. It has been a real help for me as I deal with this subject. Thanks a lot.

  3. I admire your blog , it has of lot of information. You just got one perennial visitor of this blog!

  4. You made various fine points there. I did a search on the matter and found nearly all persons will have the same opinion with your blog.

  5. I recently came across your web site and have been reading along. I thought I would leave my very first comment. Nice blog. I will keep visiting this website very frequently.

  6. Nice Blog! Visit my site also!

  7. Nice post. I hope you keep on writing such interesting stuff

  8. Great site. I have found this post quite interesting. thank you for the info.

  9. Oh man. This website is amazing! How can I make it look like this .

  10. You certainly deserve a round of applause for your post and more specifically, your blog in general. Very high quality material

  11. Greet, but it would be better if in future you can share more about this subject. making good content.

  12. You mention such a great things here and it is always pleassure to read. Hope to hear more and learn from you.

  13. i liked the post, i never find exactly what i need, i’m searching more specific details, i hope you could make a second part

  14. This is your most outstanding post so far. Keep up the good work!

  15. This point of this page ties in well with your other ideas on your blog’s home page. Great point! My associate will resonate with your tone.

  16. I just found this blog a while back when a friend suggested it to me. I have been a regular reader ever since.

  17. I agree with your thoughts here and I really love your blog! I’ve bookmarked it so that I can come back & read more in the future.

  18. I love your site. It has been a real help for me as I deal with this subject. Thanks a lot.

  19. I have been checking out some of your posts and i can claim pretty good stuff. I will make sure to bookmark your site.

  20. I for sure like your blog, but I cannot find your Rss feed

  21. I actually knew about most of this, but having said that, I still thought it was useful. Nice job!

  22. Two thumbs up for this post. You are my total hero.

  23. I really enjoyed this blog. It’s always nice when you find something that is not only informative but entertaining. Excellent.

Follow Us On Twitter

It's About Freedom!

Dedicated to God who has endowed us with the Rights to Life, Liberty, and the Pursuit of Happiness.

"A Constitution of Government once changed from Freedom, can never be restored. Liberty, once lost, is lost forever."
John Adams, letter to Abigail Adams, July 17, 1775

Categories

Archives

Blogroll