Dont get drowned by the Blue Wave: Washingtons leftward lurch means its time to protect your wealth

Democrats took control of Congress last night in a historic blue wave election, and if the past is any indication of where they’re headed, the previous ten years of tax relief may be out the window.In April this year, Senator Chris Van Hollen (D-MD) and U.S.Representative Don Beyer (D-VA) proposed the Millionaires Surtax Act to raise taxes on top-earning households by an additional 10 percent — a tax that extends to capital gains and investment income as well as wages.Van Hollen also introduced the Strengthen Social Security by Taxing Dynastic Wealth Act that would reverse the estate tax changes introduced in 2017 with Trump’s Tax Cuts and Jobs Act by reducing the estate tax exemption to $3.5 million.

Not to be outdone, Senators Patty Murray (D-WA) and Senator Ron Wyden (D-OR) introduced the Fair Trusts for Fiscal Responsibility Act in May that will close tax loopholes that shelter assets and defer or avoid estate taxes.If you need any other evidence of which way the wind is blowing, look no further than the Make Billionaires Pay Their Fair Share Act sponsored by Senator Bernie Sanders (I-VT) and Representative Ro Khanna (D-CA) that proposes an annual 5% tax on billionaires’ net worth.Though the California referendum on a one-time billionaires’ tax failed by 22 points, it won’t be the last time that kind of tax is proposed.

In fact, supporting more aggressive taxation of wealth might become a litmus test for Democratic presidential candidates in 2028.There is also the possibility that Congressional gridlock will keep the government borrowing and spending, which could drive down the value of the dollar.Already, spot gold rose 3% to $4,046.91 in Wednesday’s early morning hours, and the dollar fell by nearly a full percentage point in the hours after the polls closed. If you have a substantial nest egg saved and you want to pass that to your family instead of the government, the time to take action is now.

Look for temporary tax breaks like the $40,00...