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To: pigdog
What about Roth IRAs?

Boortz glosses over this topic on pg. 169 of his book. I paid a BIG chunk of money in income taxes to convert to a Roth after 1998. Now I am supposed to roll over and pay an additional 23-30% sales tax when I spend it??

51 posted on 09/24/2005 10:40:52 AM PDT by hripka (There are a lot of smart people out there in FReeperLand)
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To: hripka

That depends ...

First of all not all distributions from Roth IRAs are free of tax. Check the tax laws more carefully and you'll see that is so.

Secondly, if you spend whatever you withdraw under the present income tax even if none of the withdrawals are taxed by income tax laws, you will still be paying a substantial "hidden tax" in the form of the cascading, embedded tax costs that boost the prices of all that we buy right now.

Under the FairTax this embedded tax cost is eliminated causing prices to drop (prior to applying he FairTax) so with that plus the prebate you probably are just about on an equal footing from the standpoint of purchasing power. But don't kid yourself, those hidden taxes presently are real and cost you money - you just may not think of them..


55 posted on 09/24/2005 11:33:54 AM PDT by pigdog
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