Posted on 11/29/2012 11:20:58 AM PST by Perdogg
One of the earliest fears about tax-favored savings accounts like IRAs and 401(k) plans was that when this pool of savings grew large enough Congress would not be able to resist tapping it to help solve the nation’s debt problems. We’re about to find out if those fears—persistent for decades—have been justified.
Everything including the sacred mortgage deduction is on the table as lawmakers wrestle with the fiscal cliff, a year-end avalanche of scheduled spending cuts and tax increases. With a combined $10 trillion sitting in IRAs and 401(k) plans, retirement accounts make a juicy target. Some of this money has never been taxed, and under current law never will be.
(Excerpt) Read more at business.time.com ...
Oh, I think they'll be a little surprised by my response.
“I bought a house and never benefited from the “sacred mortgage deduction”. I suppose if I had bought out of my range it might have been different, but I wonder how many middle class folks actually save anything with it. I would hazard a guess that they are upper-middle-class and/or spending more than would be prudent.’
That is correct. The Mortgage Interest Loophole (as Rush calls it) doesn’t affect the bottom half of taxpayer, since the standard deduction is so big. The REAL WINNERS from this are, just as you say, upper middle-class (and higher) people with large mortgages (i.e., in BLUE states). Let them sacrifice for once.
“THAT revolt is well overdue RIGHT NOW.
Election Fraud...Tax hikes...Redistrubition...Obamacare.
When does the Revolt begin, and how will we know it started?”
Revolt of what? For there to be a “revolt” there must be a means by which the revolt takes place.
Your not going to get 150 million people to act suddenly as one. The Government will shoot or arrest the first handful and the rest will fall inline out of fear as they always do before tyrants.
If you want a revolt you have to oraginze a means of resistance! The only means we have at our disposal capable of even giving Washington pause is our States, and we can only control a handful of them in that way.
But to control any of them we will require a concerned political campaign to put into place in theses states people willing to fight for our rights on our behalf. Otherwise there can and will be no revolt!
The return on investment (ROI) from Roth 401(k)'s and Roth IRA's are tax-free. Your contributions are taxed, but all withdrawals are tax-free -- including all earnings.
And, there is no minimum required distribution for Roth IRA/401(k), so you can pass it on to a heir, tax-free. However, your heir will be required to make minimum required distributions.
Go ahead...come after it. I’ll take out anyone that tries.
It is not a lie. If you read the rest of the article, the author is referring to Roth IRA's and Roth 401(k)'s.
You pay income taxes on your contributions to Roth accounts, but you do not pay any taxes on withdrawals -- including any earnings and gains between contribution and withdrawal.
It’s a political gimmick. This way Boehner gets to pretend he saved us from a worse fate than what we’re getting. Let’s hit the fiscal wall and see what happens.
“That is correct. The Mortgage Interest Loophole (as Rush calls it) doesn’t affect the bottom half of taxpayer, since the standard deduction is so big. The REAL WINNERS from this are, just as you say, upper middle-class (and higher) people with large mortgages (i.e., in BLUE states). Let them sacrifice for once.”
Now you sound like a Liberal, that being said loopholes & deductions in the tax code are bad economic policy period.
The pro-debt tax policies need to end, asap.
I can see where libs will go crazy for the idea of confiscating retirement savings accounts. I have a sister and a brother, both libs, who have saved NOTHING for retirement, yet my sister gets a brand new car (GM) every 4 years or so.
I have never had a new car and now the government is threatening to confiscate our retirement money that we saved (by NOT buying new cars) and give it to people who spent wildly and did not save.
There won't be any revolt, CW or REV., as much as I would like to think something could be done.
ALAS: it's just all PUFF, easy to be tough in the privacy of our homes.
Find someone who will say they will start it, are you with me? Oh yes they will say, then when that someone sticks their necks out there, turns around NO ONE IS BEHIND HIM.
That is just the way it is.
“It’s a political gimmick. This way Boehner gets to pretend he saved us from a worse fate than what we’re getting.”
That is exacly what it is, its a fairly standard political tactic.
” Let’s hit the fiscal wall and see what happens.”
We already did, remember the 1995? It was a brease dispute leftist panicing.
Seriously thou republican should vote on individual bills funding each federal agency, one by one. Obviously and diliberatly failing to pass the department of education, health, agriculture, ect...
We should have something along the lines of consent of the governed at least rather than an all or nothing deal, because I and a lot of other people strong prefer nothing.
Also look at David’s posts on that thread. Very informative.
Post #103 and #110.
“Now you sound like a Liberal, that being said loopholes & deductions in the tax code are bad economic policy period.”
Yes and no. If we punish the Blue State voters that got Obama re-elected, that will be sweet justice. The base of the Republican Party, like the man who I was replying to, get very little benefit from the Mortgage Debt Loophole, as they simply don’t make $200k per year, and generally have enough kids to knock their taxes way down without it.
Wouldn't a retroactive tax on 20 years of 401(k) savings be an ex post facto law?
-PJ
Would not surprise me if the Republicans are peddling this bull squeeze so we’ll all be happy when we “only” have to pay more taxes.
If they try to confiscate the people’s own savings in their IRAs, and somehow roll all of that over into the broken and failing Social Security program...we had best be prepared to fight.
It will be dictatorial confiscation...absolutely and utterly unconstitutional, and the tyrants (which we have known them for for some time now) will have come completely out of the closet.
Such an abuse of power and abject theft must be met with the same resistance and fervor our founders showed the King...or there will be no recovering fom it.
America at the Crossroads of History
http://www.jeffhead.com/crossroads.htm
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