Is your tax planning impacted by how many public employees and retirees are on the state dole?

Who pays the benefits for public employees and Medicaid benefits in your state? These authors (http://www.forbes.com/2009/11/11/taxes-employment-government-business-beltway-tax-burdens.html) argue that private sector employment pays and the ratio of private employment to public employees and beneficiaries is an indicator of your state's financial health and future prospects. New Mexico and Mississippi have almost a 1:1 ratio. Increases in benefit enrollment and government pensions coupled with decreases in private employment would further impact state budgets and ability to pay contractural obligations. Tax strategies should consider this indicator among other inputs; for example, are some states' tax-free municipal bonds going to be adversely impacted by these conditions in poor economic times?


The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!