Taking
It to the Polls
Although voter turnout is typically lower during primary races, many more voters may be
eager to get to the polls this November. Their decision making there will play a
critical role in the nation’s economic future.
In the
narrowly divided Senate, 33 seats are open.1 In the House of
Representatives, where the party divide is slightly wider, all 435 seats are
open. With the balance of political power so precarious, the future of income
taxes, estate taxes, and Social Security reform may depend greatly on the
outcome of this fall’s election. And this could impact the way you spend,
save, and invest in the future.
Social
Security
With potential budget deficits expected in fiscal years 2002 and 2003, some
experts believe that Social Security reform will take a backseat to other
concerns. Still, poll results indicate that half of Americans favor partial
privatization of the government-run retirement program.2 Lawmakers
who share the desire for reform may make this an issue in future elections.
Income
Taxes
Even though Congress passed President Bush’s tax-relief package in 2001, some
legislators have suggested delaying the act’s full implementation until the
government is on sounder footing. Yet in one poll conducted earlier this year,
67 percent of Americans favored cutting taxes for everyone now rather than
waiting.3
Estate
Taxes
The estate tax reforms that were part of the 2001 tax act won’t be fully
implemented until 2010, but the reforms are scheduled to expire in 2011 as a
result of the law’s sunset provision. Although it is possible that Congress
will eventually change the temporary status of estate tax reduction, it remains
unclear what action lawmakers will take.
Regardless
of the election outcome, the way Congress handles these and other issues is
likely
to impact the finances of most Americans. Keeping an eye on Washington may help
improve your financial outlook.
1) United States Senate,
2002
2) Investor’s Business Daily, February 27, 2002
3) Investor’s Business Daily, January 17, 2002
© 2002
Emerald Publications
