AriseTV Xchange (March 2, 2015-Part 2)

May 12, 2023

April 24, 2015

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The second segment of Michael W. Conway's AriseTV special edition interview on the Greek bailout.

Transcript

Andrew Schmertz: We are rejoined here in our New York studio by Michael Conway, CEO of the Conway Wealth Group and also back with us out of Washington is Ivan Eland, Director of the Center on Peace and Liberty at the Independent Institute.Ivan, I'm going to start with you because we don't have a lot of time here. There's talk of a third bailout for Greece. Is that going to happen?Ivan Eland: Well, it wouldn't surprise me. I think as your previous segment pointed out, there are vested interests within the eurozone such as the German exports, et cetera, which would like to keep the eurozone from falling apart. Of course, the German people are pushing the other way and they're tired of bailing out these countries, especially Greece. I think usually what happens is we limp along. There's periodic crisis and we just keep putting Bandaids on rather than going for the true solution.Andrew Schmertz: Michael, if there is a third bailout, how does that affect the markets do you think?Michael Conway: I think the markets want to see this thing resolved. I think they want to see Greece get back to paying its bills in a timely way. I think the biggest issue that we have here is the tax receipts. The tax receipts in January for Greece were down 23%.Andrew Schmertz: Is that because of tax evasion or because the country's not generating much money?Michael Conway: I think it's both but mostly tax evasion. The Greek people, I think, look at taxes as almost theft. It really is different from the other countries, and it's a big issue. Those revenues, you talked about the billions of dollars, that money is needed to pay interest and pay the bond payments.Andrew Schmertz: Okay, yes or no. They stay in the Euro? One year from now, they're still in the Euro?Michael Conway: One year from now they're still in the Euro, three years from now, it's 51% chance they're out of the Euro.Andrew Schmertz: Ivan, one year from now and three years from now. In the Euro, out of the Euro? What does it mean?Ivan Eland: Yeah, I don't disagree with that in general. I think they'll try to limp along for a while. You know, the markets only reflect ... you know, they want them to pay their bills in the short term and everything, and the markets don't care if Greece is in the long term. I think Greece has to get this debt down. They've got to reduce their pension programs, their social programs. They've been living high on the hog since the 80s and they've got to stop it.Andrew Schmertz: Ivan Eland in Washington, DC, Michael Conway here in New York. Thank you both for your help today. This was a good show.Michael Conway: Thank you.Andrew Schmertz: Appreciate it.Ivan Eland: Thank you.Andrew Schmertz: Thanks, everyone for watching our special. I'm Andrew Schmertz. We'll see you here tomorrow at Arise Xchange.

Initial 2021 Tax Considerations

With the swearing-in of a new President and Vice President, plus convening of the next Congress, affluent Americans are weighing how changes in federal government may financially impact them.

Given that Democrats hold the Presidency and control both Houses of Congress by a slim margin, it now seems likely that tax reform could be passed as a budget reconciliation bill and then signed into law. While there is a remote chance that expected tax changes will be retroactive, it is more probable that they would take effect immediately upon becoming law or even at the start of 2022.

Since 2021 may be a last opportunity to capitalize on current income, capital gains, and transfer tax laws, families are considering key financial & estate planning adjustments, where appropriate.

Income & Capital Gains Tax Proposals

With the swearing-in of a new President and Vice President, plus convening of the next Congress, affluent Americans are weighing how changes in federal government may financially impact them.

Given that Democrats hold the Presidency and control both Houses of Congress by a slim margin, it now seems likely that tax reform could be passed as a budget reconciliation bill and then signed into law. While there is a remote chance that expected tax changes will be retroactive, it is more probable that they would take effect immediately upon becoming law or even at the start of 2022.

Since 2021 may be a last opportunity to capitalize on current income, capital gains, and transfer tax laws, families are considering key financial & estate planning adjustments, where appropriate.

“Be fearful when others are greedy and greedy when others are fearful.”

Responsive Planning

Given the above proposals, there is great uncertainty surrounding future tax policy. Even if some of the more benign tax provisions now in effect are not repealed, many of them are scheduled to sunset at the end of 2025 already.

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  • Phase out the 20% pass-through deduction on qualified business income for people with annual income exceeding $400,000
  • Eliminate capital gain deferral through like-kind exchanges of business & investment real estate for people whose yearly income exceeds $400,000
  • Increase the highest corporate income tax rate from 21% to 28% and subject corporate book income of $100,000,000 or more to a 15% alternative minimum tax
  • Double the tax rate on global intangible low tax income (GILTI) earned by foreign subsidiaries of American businesses from 10.5% to 21%
  • Impose a 10% surtax for U.S. companies that move manufacturing & service jobs to another country and then provide services or products for sale back to the American market
  • Create an advanceable 10% “Made in America” credit for manufacturers’ revitalizing, re-tooling and hiring costs
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