If anyone believes the government, whose debt is approching 20 trillion, will keep the current tax law in place forever ... I have some penny stocks to sell you.
“If anyone believes the government, whose debt is approching 20 trillion, will keep the current tax law in place forever ... I have some penny stocks to sell you.”
My parents socked away their earnings from WW2 buying bonds. It wasn’t just the patriotic thing to do, it was about the only thing to do with war wages since there were few consumer goods on the market. The government sold the bonds on the basis that they would be a “retirement nest egg.” But the bonds matured before these people would reach retirement age. So the government told them that if they roll over the bonds into new government bonds, they would not tax the interest earned.
Lo and behold, 25 years later it was time to roll over the wads of war bonds. Sure enough, some time in between the government changed the rules. All the accrued interest was taxed when the bonds were redeemed. Right when my dad was at his peak earnings period of this career, so that the interest was taxed at a fairly high rate.
Needless to say, my parents felt they had been lied to and cheated. And I learned a lesson. The government will deliberately herd people’s money into a big pot somewhere with promises of tax breaks, but once the pot gets big enough, they will dip into it.