Morgan Stanley Executive Urges Congress: Tax The Rich

Tuesday, December 06, 2011 07:59
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Morgan Stanley Executive Urges Congress: Tax The Rich

Tags: high net worth | tax planning

The debate over whether Washington should raise cash by raising tax rates on the richest Americans has reached the wirehouses as the chief financial officer of Morgan Stanley appears to be arguing against the firm's wealthy clients.

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Ruth Porat told the audience at a conference sponsored by the Economist that "the wealthiest can afford to pay more in taxes."

 

Those remarks cut through all the industry's hedging on tax policy.

 

A lot of advisors -- at Morgan and elsewhere -- have been warning their clients for years that taxes have to go higher.

 

After all, the government is bleeding money after bailing out Wall Street, and rates are at a historic low. Simple reversion to mean would indicate a larger tax burden in the future.

 

Naturally, helping high-net-worth families cope with various tax scenarios is part of what good advisors do.

 

And your clients may be on Ruth Porat's side. She's compensated very well as one of the top executives at Morgan Stanley.

 

Ask them how they feel about their tax responsibilities before you jump to any conclusions about whether they want to pay the government more. They might; they might not.

Comments (2)

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kenw516
"pay the government more." That's an unfortunate phrase. WE are the government, and WE need more money for infrastrucure, education, defense, etc. It serves no public good when we think of the government as something apart from us. When we don't like the government, we can change it, but at any time, it is the government the majority voted for.
kenw516 , December 06, 2011
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ScottMartin
Hi Ken -- great point. I get the feeling this kind of distinction is becoming more important in client tax strategy meetings. Or should. Thanks for reading and weighing in.
ScottMartin , December 08, 2011

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