NEW DELHI, JULY 09, 2010: WITHIN six months, Americans will face the highest hikes in tax rates as well as reintroduction of dead taxes like the Death tax of 55 per cent on the estate of the departed, predicts Bob Bauman, legal counsel with the Sovereign Society, a network of experts in offshore finance that also recommend global investment strategies.

In January 2011, the lowest 10 per cent tax bracket is expected to rise to 15 per cent while the highest tax bracket of 35 per cent will be nearly 40 per cent. While those who are married are expected to pay more, the child tax credit is expected to be slashed by 50 per cent.

Although global private wealth increased in 2009, by 11.5 per cent to US $111.5 trillion, millionaires vanished from America. According to the Boston Consulting Group’s Global Wealth 2010 Report, the largest gain of wealth occurred in the Asia Pacific Region with the highest percentage of millionaires in the country population being in Singapore at 11 per cent, followed by Hong Kong and Switzerland at 8.8 per cent and 8.4 per cent respectively. Europe, despite its debt problems, was the wealthiest region with more than $37 trillion in private assets under management, an increase of 8.8 per cent from 2008.

With the expected tax hike, Bauman advises Americans to look upon offshore banking and investing for investment diversification, higher returns and much more currency diversification and solid asset protection.

Although governments rampage against offshore investments have brought in new reporting requirements and weakened financial privacy, these factors are offset by attractive lower or no taxes to attract smart foreigners looking for investment options, states Mr Bauman.