1938: Ask Farnoosh and Georgia Lee: Taxes, Values and Policy (Encore)

What It Covers

Farnoosh Torabi and financial planner Georgia Lee Hussey analyze the 2025 tax legislation's impact on everyday taxpayers, revealing how most Americans will save 3-5% on taxes while social programs lose $12 billion in healthcare and $3 million in SNAP benefits. They provide specific tax planning strategies and charitable giving approaches to align financial decisions with values.

Key Questions Answered

• •Tax Savings Calculator: Use the Tax Foundation calculator to determine exact savings from the 2025 bill rather than relying on percentages. High-income earners may save $50,000 annually while most save 3-5% of income. Understanding the specific dollar amount helps contextualize the tradeoff between personal savings and defunded social programs like food stamps, housing vouchers, and healthcare for vulnerable populations.
• •Strategic Charitable Giving: Donate appreciated stock gains to maximize tax benefits while supporting underfunded organizations. Ask your CPA whether you itemize deductions—if not, consider 501(c)(4) organizations that engage in policy advocacy and legal action rather than only 501(c)(3) charities. Clients donating 3-5% of asset sales for reparations or social impact can offset tax savings with meaningful contributions to journalists, lawyers, and civil rights organizations.
• •Portfolio Rebalancing Strategy: Maintain 40% international and 60% US stock allocation to avoid overconcentration in potentially overvalued domestic markets. Donate appreciated US stocks that have grown significantly to rebalance portfolios while supporting causes, avoiding capital gains taxes, and maintaining long-term investment plans. This approach takes gains off overperforming positions without attempting to time the market based on news-driven fear.
• •Tax Planning Timeline: Schedule comprehensive tax planning conversations with CPAs now, three weeks before they become overwhelmed with returns. Effective planning requires integrating tax strategy with investment management, Roth conversions, legacy planning, charitable giving, and banking decisions. File extensions if possible, as the IRS faces implementation challenges with new legislation while dealing with staff reductions and outdated systems from the government shutdown.
• •Values-Based Financial Framework: Define wealth beyond money to include time, relationships, social capital, skills, and well-being when making financial decisions. Apply the ethical principle of not taking what isn't freely given and being maximally generous. Calculate tax savings, understand systemic impacts, and make informed choices about whether to donate savings to offset social program cuts affecting housing, food security, and healthcare access.