Automation may soon affect even industries and jobs we thought were immune, so what should countries do to prepare for those left jobless and behind? Bill Gates recently offered a simple solution: Tax the use of robots. He argues that such a tax would both “temporarily slow down the spread of automation” and fund social safety net programs for those who lose their jobs to technology.
With many Americans reviewing their financial situation after the passage of the Tax Cuts and Jobs Act, it is important that any life insurance needs are also reviewed at this time. The reality is that many people do not think about life insurance as a financial asset and don’t review their life insurance needs frequently enough. Individual life insurance policies consist of over $12 trillion in the United States. But many Americans are not well informed about their life insurance needs, policy specifics, or planning options. As your finances change, as your family grows, or when laws change, it is important to review your existing life insurance and to see if you have a heightened need for any more insurance.
The Tax Cuts and Jobs Act made significant changes that impact the use of life insurance as an estate protection vehicle and modified the tax ramifications of selling a life insurance policy on the secondary market as part of a life settlement. From a fundamental life insurance planning standpoint, these changes reduced the need for some individuals to have life insurance to protect an estate from federal estate taxes and improved the tax situation surrounding the sale of a life insurance policy.
New tax law prohibits deduction of alimony, starting in 2019
More cases may wind up in court as an incentive is eliminated
President Donald Trump’s tax law could make divorce an even more miserable experience, according to a new survey of the nation’s top matrimonial attorneys.
Almost two thirds of respondents said they expect divorce negotiations to become more acrimonious following a change to the tax treatment of alimony, a poll by the American Academy of Matrimonial Lawyers showed. The new law includes a controversial provision that scraps the tax break divorcees get for paying alimony -- starting for divorces finalized next year.
Battles will ensue since alimony payers will have less of a tax incentive to be generous to their former spouses. The provision allows recipients to omit the alimony they receive from their taxable income, but divorce lawyers don’t expect that to offset the loss from a lower payout. The change could also have lasting consequences for child support, which is often calculated in tandem with alimony.