Are you afraid that the tax system will be changed to VAT, making a Roth a bad deal?

[Koolau]

I would say it takes WAY more courage to REDUCE taxes than to raise them.

Jim[/QUOTE]

Very insightful. We all know it's impossible to cut spending. Too many votes to buy. Now that there are fewer (net) taxpayers than there are beneficiaries of government largesse, raising taxes is probably looked upon (by the majority) as a "good" thing. Once it reaches that point, there's no going back until some sort of "quantum" event occurs. Not looking forward to that day.

 

[Zathras]

I strongly disagree.
Lowering taxes is the easy way out and how politicians buy votes.
When was the last time the populace voted in someone with a motto of 'More Taxes for Everyone!' vs 'No New Taxes!'?

 

[chinaco]

IMO - No. If a VAT is instituted... it will be an additional tax on consumption. Income taxes will not go down. You can still use the Roth to manage the income side of the tax equation.


Any sort of VAT will wait until we see the effects of the Income tax and Estate Tax reset in 2011.

If a consumption tax is enacted, it will probably be an energy consumption tax that encourages energy conservation and efficiency. Since energy costs are embedded in all goods and services... it will be like a VAT.

 

[donheff]

I would say it takes WAY more courage to REDUCE taxes than to raise them.

Politicians cut taxes all the time with no commensurate cut in spending. They don't even get filibustered and they get little blame for contributing to the deficit. Real courageous.