Rantings and tirades of a frustrated economist.
Step back for a moment and look at the situation.Capital is the entire basis for a successful economy. Savings are used by banks, to lend money to businesses. Stocks, dividends, interest, everything, they all require capital. If everyone put their money in the mattress, or in an offshore bank, the economy would collapse. So what does the government do; they tax interest, dividends, and capital gains. This is taxing the life blood of the economy. Then they turn around and allow tax free retirement accounts, to encourage people to save. Savings should never be taxed in the first place. Now there is talk of taxing retirement accounts. This is madness!I don`t think Jefferson ever envisioned this type of scenario.
Why don't they just admit that Soc Sec is welfare, and make it needs based? The Roth IRA encourages people to save, and the more they save, the less Soc Sec they need. The less they pay out for Soc Sec, the the more they have to do . . . whatever they do.
Cap - the socialist thugs running the government will tax anything and everything they possibly can to maximize dependency on government and hence buy votes.Unless we give them the nuclear option and kick them out first.
Congress certainly can do what the article suggests. Whether they will choose to weather the firestorm that would result if they tried is another matter entirely.I'm sure that if they tried they would denigrate Roth accounts as a "tool for the rich". I'd rate direct taxes and asset confiscation as unlikely, though. They'd probably go for something more subtle, like subjecting Roth accounts to Minimum Required Distributions and reinstituting an (unindexed) excess distributions tax (which would apply even on MRDs).
During the Depression, Roosevelt nationalized gold. People were forced to open their safety deposit boxes, in front of the bank manager. All gold coins had to be turned over to the federal government.Don`t be surprised to see the federal government take over retirement accounts, if federal revenues start to plummet. In fact, the move would be quite popular. Soak the rich tax grabs, are always popular in a bad economy.
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