Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 10-29-2007, 01:46 PM   #21
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by kumquat View Post
Or Hillary
That's pretty funny.....Hillary LOWERING taxes....................
__________________

__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-29-2007, 01:50 PM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by justin View Post
For folks suggesting that Roths, for example, might lose some of their tax exempt status in the coming years or decades, are there examples from recent U.S. tax law history that suggest the government might take away favorable tax treatment of these type accounts. In other words, if one were to act in reliance on the promise from the government that a certain account type (or other long-term, non-revocable money decision) would be tax exempt/tax favored going forward, has one been disappointed by the government changing their position after the fact? Have promises been broken?
It would be VERY DIFFICULT to repeal the Roth IRA as it stands. Even if it were repealed, current Roths would be "grandfathered" in..........

Why would Congress worry about it? It's not like 50% of Americans are using them anyway.........
__________________

__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 10-29-2007, 02:30 PM   #23
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 4,005
Quote:
Originally Posted by FinanceDude View Post
It would be VERY DIFFICULT to repeal the Roth IRA as it stands. Even if it were repealed, current Roths would be "grandfathered" in..........

Why would Congress worry about it? It's not like 50% of Americans are using them anyway.........
My thoughts exactly on both counts. My roth is safe. I don't have much of an option between Roth/Traditional since the income limits to deduct Trad's are sufficiently low that I'm basically phased out of being able to contribute to Trads. That's why I'm contributing to Roth's now.

I see a national sales tax (as a REPLACEMENT to income tax) as a low probability event. Now they might just add it on top of income tax...
__________________
justin is offline   Reply With Quote
Old 10-29-2007, 02:37 PM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Quote:
Originally Posted by justin View Post
I see a national sales tax (as a REPLACEMENT to income tax) as a low probability event. Now they might just add it on top of income tax...
Gotta pay for these republican wars some how...
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 10-29-2007, 04:40 PM   #25
Thinks s/he gets paid by the post
Tadpole's Avatar
 
Join Date: Jul 2004
Posts: 1,174
I have always wondered who the American taxpayer thinks is going to pay their bills if they aren't. People who would brag about not having private debt would support public debt to infinity if they could pretend to themselves that someone else is going to step in and pay their part in a madness or that it will go, poof, away and no one will have to pay.
__________________
Tadpole is online now   Reply With Quote
Old 10-29-2007, 05:33 PM   #26
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,359
Quote:
Originally Posted by justin View Post
Serious tax question without meaning to cast aspersions on anyone:

For folks suggesting that Roths, for example, might lose some of their tax exempt status in the coming years or decades, are there examples from recent U.S. tax law history that suggest the government might take away favorable tax treatment of these type accounts. In other words, if one were to act in reliance on the promise from the government that a certain account type (or other long-term, non-revocable money decision) would be tax exempt/tax favored going forward, has one been disappointed by the government changing their position after the fact? Have promises been broken?

There is historical precident for taxation of "excess" IRA distributions. Before 1997 if you took more than what was deemed to be a "reasonable" amount out of your IRA, then you were hit up for an extra 15% excise tax. This was on top of any income taxes owed on that amount.

So something along those lines is certainly possible for a Roth IRA. Keep that in mind as you do your lifetime planning. Perhaps the concept of several independent accounts or streams of income is the way to go for tax diversity.
__________________
MasterBlaster is offline   Reply With Quote
Old 10-29-2007, 10:17 PM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,615
Quote:
Originally Posted by FinanceGeek View Post
In fact I kinda suspect that any discussion of higher capital gains tax rates, or elimination of preferential treatment for capital gains, might tank the market.
I think it will have an effect, but perhaps not a big one. For example, over the next few years I may sell some MFs and pay the cap gains tax rather than wait until after 2010 and pay tax at the "regular income" rate when I sell. However, after I sell those MFs I'm likely to just repurchase the same ones (effectively just re-setting the basis through this action). If people do this, it shouldn't have an appreciable impact on share prices. They have to buy something with the money they get when they sell, right?

Still, raising the effective tax rate on equities (by eliminating the favorable tax rate on cap gains) will make them less attractive investments, which will drive down their prices somewhat.
__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is offline   Reply With Quote
Old 10-29-2007, 10:52 PM   #28
Recycles dryer sheets
 
Join Date: May 2007
Posts: 290
Quote:
Originally Posted by justin View Post
Have promises been broken?

I'm drawing blanks right now.
There are no promises when it comes to taxes or Congress. Congress has even been known to pass retroactive tax hikes, with the full blessing of the Supreme Court when it has been challenged.

If they need money, they will find a way to get it.
__________________

__________________
bpp3 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Already-Retired Firecalc Spending Increases? halo FIRECalc support 5 06-10-2007 11:08 AM
$31,000 Check coming soon and in the AMT tax bracket Foodeefish FIRE and Money 8 01-26-2007 11:41 PM
FDIC and FCUA increases Martha FIRE and Money 0 03-16-2006 03:44 PM
Wage Increases vs. CPI Increases TromboneAl FIRE and Money 19 05-06-2005 02:05 PM
Withdrawal Rate Increases with Time? mccl FIRE and Money 26 05-22-2004 04:51 AM

 

 
All times are GMT -6. The time now is 02:16 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.