According to the nonpartisan Tax Foundation, H.R. 3200, the health care reform bill that cleared the House Ways and Means Committee, would "push income redistribution to$1.4 trillion."
The Tax Foundation says that low-income Americans would benefit the most. But even middle class Americans would stand to gain. Says the Tax Foundation: "The biggest beneficiaries of HR 3200's redistribution would not be low-income families, but middle-class families, especially those making between $65,704 and $112,721, who would see an average benefit of about $1,900. In fact, even in the 60 percent to 70 percent income group, earning up to $141,101, the average family would gain almost $1,000."
But --- and this is the rub if you are an advisor with HNW clients ---"among the highest earners, those in the top-earning 1 percent of families, the additional amount redistributed away from each family would be $88,729 in 2016, the first full year in which the health care legislation would be in effect."
Of course, it's true that there are five existing bills floating around the legislature, but brace yourself for some kind of health care overhaul, what with the Senate Finance Committee passing a bill this week. Either way, looks like we're back to soaking the rich. Time for HNW Americans to seek out talented estate planners and estate attorneys to figure out how to protect themselves from this one. But how? If you have any ideas --- any legal strategies --- I'd love to hear them. There is nothing but uncertainty in estate planning these days since no one knows what Congress will do to the estate tax that will sunset in 2010.