On Apr 24, 5:24 pm, BreadWithS...@[EMAIL PROTECTED]
wrote:
> raylopez99 <raylope...@[EMAIL PROTECTED]
> writes:
> > This is the first time I've seen this in a respectible publication--
> > that eventually the US will tax "tax free" accounts, even, as Jim
> > Jubak says, Roth IRAs!
>
> It's interesting to speculate on what form that taxation
> may take - probably not straight up income taxes.
Agreed. And I would hate to be the politician that tells America we're
going to start taxing your Roth! Then again I would hate to be a
politician at all ;-)
Remember the original intent of these tax incentives were to control
the actions of Americans. The same thought process applies to mortgage
interest deduction and munis, fo rexample. Unless the gov't no longer
wants to motivate us to save for retirement, it is counterintuitive
they would directly attack retirement accounts. It would also likely
create such a level of distrust amongst citizens that the gov't would
lose it's motivational power all together. Nobody relies on the word
of an "indian giver" (pardon the expression).
More likely (but purely speculatively) the IRS will use indirect
methods (lowering phase outs, altering AMT rules, lowering exemption
amounts, delaying age based benefits, etc...)
I would be very surprised to see existing Roth's directly taxed. Even
the symantics are extremely complicated. How would they prevent a
"bank rush" on Roths when the legislation is proposed before Congress?
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