Make no mistake about it—your income and capital gains taxes are going up!

The inevitable tax increase will cause employment to fall, inflation to rise, and GDP to slow to a trickle—as the markets collapse under the crush of a new tax burden.

The worst part is, Obama and Congress don't have to do a thing. Taxes on your investments will increase automatically on December 31, 2009 whether they vote on it or not!

The Bush tax cuts that helped drive safe, high-dividend income stocks to new great heights during the past five years will be gone for good.

The new taxes on dividends and capital gains will not only put downward pressure on consumer spending but also on corporate earnings.

And the slide may have already begun.

This is why, over the past few months, the biggest diversified stock funds have lost an average of 35%, and the most vulnerable banks, retailers and some utilities have cut dividends.

And it's only going to get worse, as more and more investors wake up and realize that not only will taxes on their dividends will rise 20% on December 31, 2009 but also taxes on capital gains will rise as well, back to 20% from a historic low of 15%.

The resulting sell-off could make the subprime shocker and the credit crunch look like drops a bucket. (See also: "Making Sense of This Crazy Market.")

While the tax shocker will send most investors to the poorhouse, it will make serious money for any investor who understands the real consequences of these tax law changes.

That's why it's so important that you reposition your assets now. If you can simply follow our lead, you could easily double your money by this time next year in the only tax-deferred investment that will side-step the carnage and profit at the same time.

Where the Big Money Will Be Made

Surprisingly, the biggest winners of the new tax hike will be a special class of investments that give you tax-deferred status outside of your IRA or 401(k).

If you're one of my regular Profitable Investing readers, you know what I'm talking about…