by John Darer CLU ChFC MSSC CeFT RSP CLTC
Illinois lawmakers are set to vote on a 75% income tax increase according to a January 6, 2011 CBS Chicago news report. Without annuitants doing a thing, tax increases improve the intrinsic value of existing structured settlements, as well structured attorney fee programs and non qualified assignments. An increase in income tax also makes new structured settlements more attractive, even at times when yields are modest. Moreover, the Federal government will eventually need to raise taxes to make a dent in the trillions of dollars in debt it has accumulated.
Helpful Financial Tool
Taxable Equivalent Yield chart enables you to find the taxable equivalent yield of a structured settlement, or any other tax free income stream at various assumed income tax rates. The chart also allows you to calculate what the after tax yield of a taxable investment at various assumed interest rates.
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