IN FRATERNAM MEAM: WHAT TO EXPECT OF BUSH'S SECOND TERM AGENDA

IN FRATERNAM MEAM

Monday, November 08, 2004

WHAT TO EXPECT OF BUSH'S SECOND TERM AGENDA

(abstracted from PERSONALFINANCE/WST.J)

The Next Four Years
President Bush has signal that he plans to try to implement or extend programs introduced in his first term. Look for new types of retirement savings accounts and potentially higher oil prices.

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TAXES
The current top tax rate of 15% in dividends and capital gains is likely to maintained, as is the top federal income-tax rate of 35% Bush is likely to push to make those tax cuts permanent.

Bush is expected to press for permanent repeal of the federal estate tax,now set to disappear in 2010 but then reappear in 2011.

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RETIREMENT
Under Bush's proposal to revamp Social Security, he could allow individuals to direct some of their payroll taxes into retirement accounts where they could potentially earn higher terms, in exchange for scaled-back guaranteed benefits.

Workers could see their employer sponsored retirement plans consolidated into a new single plan, konw as the Employer Retirement Savings Account.

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HEALTH CARE
Employers will get more incentives to roll out health savings accounts, which allow consumers to set aside pretax funds for future medical expenses.

New Policies resulting from last year's Medicare overhaul are likely to continue intact. Seniors can expect a new prescription-drug benefit in 2006.

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COLLEGE SAVINGS
The tax advantages of 529 college-savings plans are likely to be extended. Bush's 2001 tax law made qualified withdrawals on earnings tax- Free, but those benefits were scheduled to expire in 2010.

Students who qualify for Pell Grants could get an additional $1,000 in their first year of college if they meet certain requirement.

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ENERGY
Expect higher oil prices, at least in the short term, since Bush supports continuing to fill the Strategic Petroleum Reserve.

Bush isn't likely to demand strict new fuel-efficiency rules or big new fuel taxes.

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posted by infraternam meam @ 1:20 AM

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