The cruelest insult will be to those who reach a manditory retirement age on the day we switch from income tax to consumption tax. They will will have paid income taxes on an entire career of savings just in time to turn around and be taxed again as they spend it.
I keep seeing and hearing how those in retirement or near will be "hurt" by this tax change. For one, those are the same people who paid MUCH less for most of their careers in Soc UnSecurity taxes than the current tax rates. Second, they will be getting more and more government handouts like free drugs. Third, they are implying that the tax code should not be changed so others can be penalized instead of them. No wonder the "greatest" generation is being seen more and more as the "Greediest" generation.
>The cruelest insult will be to those who reach a manditory retirement age on the day we switch from income tax to consumption tax. They will will have paid income taxes on an entire career of savings just in time to turn around and be taxed again as they spend it.<
Not the case.401K income is not taxable the day you retire.It is taxable as you withdraw it over 20 years at the rate of withdrawal perscribed by the Gov.The retired person comes out ahead.No income tax on retirement no consumption tax on basic neccesities(where most of spending goes)
"The cruelest insult will be to those who reach a manditory retirement age on the day we switch from income tax to consumption tax. They will will have paid income taxes on an entire career of savings just in time to turn around and be taxed again as they spend it."
This is very true and sad at the same time. But what did the Baby Boomers ever give up for the this country anyway besides the Vietnam War?
(This is a joke!) -- Meant to be humerous.