Generation 7, LLC guiding Indian Country to financial stability

The American economy has been on a roller coaster ride of unpredictability over the past few years, from the financial meltdown from the sub-prime mortgage lending fiasco to the nearly trillion dollar bailout of the United States banking system.

Throughout the stomach-curdling ride, one Native American financial advisor has braved the highs and lows to guide Indian Country in the right direction.

Generation 7, LLC has been investing in the legacy of Indian Country, offering a multitude of consultative services in the world of financial advisors. Tribally-owned, Generation 7 has kept abreast of issues and financial legislation affecting Indian Country since its formation in 2002.

Never before has financial advice been more important for Indian Country.

According to statistics from the District of Columbia Tax Foundation, the U.S. Government receives over half its income from individual income taxes (50.4 percent). The rest of the revenue comes from payroll taxes (31.4 percent), business income taxes (14.6 percent) and other taxes such as gasoline and tobacco (3.6 percent).

These startling figures illustrate the strength of the American workforce, as they truly shoulder the financial weight of a nation. Still, many tribal members pay even more taxes, in the form of upfront, mandatory federal withholding percentages on Per Capita payments.

For tribal members, this mandatory withholding amount varies depending on Per Capita payments and can be as high as 31 percent. With all the negative national media and stigma associated with tribal Per Capita payments, Indian Country is actually a much larger taxpayer than the average American.

It is these kinds of stark statistics that Generation 7 tracks and monitors for the best interests of Indian Country.

With offices in Arizona, California and Montana, Generation 7 was created to address investments, tax strategies and estate conservation issues of tribal nations. Working together with international law firms specializing in tribal affairs, Generation 7 has developed into the premiere tribal tax deferment company in the U.S.

Generation 7 employs a staff of certified public accountants and certified financial planners with decades of experience, working in tandem to produce maximized return on investment from mutual funds, certificates of deposit and annuities.

Currently, the immediate threat of new taxes slated for Per Capita recipients is the primary concern of Generation 7, as tribes will become saddled with a 24 percent increase over a three-year period.

Generation 7 CEO, Dr. Stephen Drake, said tribes must act immediately to prevent loss of income once the tax increases are executed.

“Congress now has a surtax of 3.8 percent on Per Capita for many higher Per Capita tribal members,” Drake said. “Tax rates are going up and will jump to 43.4 percent in 2013 from 39.6 percent in 2011 and from 35 percent in 2010.

“This is a 24 percent increase,” he added.

When combined with increasing state taxes in states like California, the higher rates will equal taxes in excess of 50 percent for tribal members. This will be a direct impact to tribal members living off the reservation.

Generation 7’s strategy during these tax increases is for tribal members to maximize their Per Capita savings plans and establish a legacy for the future. The fluctuating U.S. economy has much of the country braving the storm of uncertainty and now is the time for Indian Country to prepare.

Drake said, “Capital gains taxes will also increase to 23.8 percent in 2013 from 20 percent in 2011 and from 15 percent in 2010. This is a 58 percent increase.”

The chief executive officer reiterated the financial burden for tribal members will only increase for families living off the reservation.

“These tax increases are significant,” Drake said. “The bottom line for higher-earning tribal members is to implement a tax-deferred per capita plan to preserve wealth.”

Information: www.generation7llc.com or call toll free at 1-877-218-7800.