From the Wall St. Journal. This originally came out in October, but I didn't hear about it until yesterday, and never saw anything about it in my usual news sources.
Basically, Congress is hearing proposals to end tax-deferred retirement savings accounts as we know them, and substituting a government-run Social Security-like account in their place. Apparently they don't think we can invest our own money well enough, and they need our money under their control to use as collateral for more borrowing.
Now you know why the rich have offshore accounts--I suggest you start looking into it yourself until someone can come up with a better way to avoid all this. Meanwhile, I'm paying attention to what happens with the capital gains rate--converting "non-taxable" accounts to "taxable" ones may be less damaging to our plans overall than simply surrendering them to the like of Nancy and Harry for a meager guaranteed 3% annual return.
This is going to be one hell of a tax increase for ALL of us--at least $20.5k in added individual income when shelters are done away with ($15.5k for 401k's and $5k for IRA plans). Gosh--I wonder what Congress itself is going to do...oh, wait--they have pensions!
Another thought: you can legally make a withdrawal from retirement accounts to buy your first home--perhaps we can withdraw all of it, and start buying homes in cash with our retirement money. We can all live in huge mansions just to protect our money just like the rich.
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3 comments:
Yet another way to stick to the responsible people.
Yep--the Dems are long on power and short on principle, and they want so badly to usher in the "uber-nanny state". Too bad I don't have enough money in retirement funds to qualify for an offshore account, otherwise I'd be going there instead. I already wrote my tax god about the problem, and expect an article about it any day now.
I know I'm jumping the gun here, but it looks like the ultimate answer is to make less money--you make less, they tax less. As I said in another prior post: now (and the next four years) is a good time to be unemployed.
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