Planning Briefs

U.S Government Covid aid to individuals and businesses is expected to raise the nation’s debt to about $28 trillion. For high- earning and high-net worth individuals now is your last chance to act before higher taxes are expected to be enacted in 2021. Here’s what you need to know:     

The $6 trillion in Covid aid and stimulus adds to the $22 trillion federal debt outstanding, incurred to pay for Social Security, Medicare, Medicaid, and other programs, and years of widening annual federal budget deficits. The nation’s debt is about equal to current annual gross domestic product (GDP) but expected to swell to 127% of GDP, according to the Committee For A Responsible Federal Budget, a bipartisan think tank.