Hurt: Those who have saved in the past in non-tax deferred accounts. They paid income tax on the money before saved and will have to pay again when spending it.
>Hurt: Those who have saved in the past in non-tax deferred accounts. They paid income tax on the money before saved and will have to pay again when spending it.<
This is more than off set by the absence of taxes on IRA and 401K savings which dwarf deposits in Roth Ira's.The 23% sales Tax is balanced by the lack of taxes when money is withdrawn and the ability to withdraw on your on schedule.I am 53 I would love to have access to my 401K money right now with no tax penalty
Huh? Non-taxed deferred, but taxed before saving?
This makes no sense.
My 401K was all pre-tax; off the top of my gross. It means I was betting on a better tax position when I retire.
Under fair tax, I only pay taxes on that retirement fund, when I spend it on new goods or services.
I figure that's a better tax position.