Posted on 10/21/2017 6:37:10 PM PDT by Mariner
If SALT deductions are removed, you end up with an immediate scream from taxpayers to cut state and local taxes.
I was talking to a family member about investing in his 401K. “That 3% match for your 6% is 50% return on the money for nothing but savings!”
You can’t get that anywhere else in the real world.
“It’s better to take the tax hit now in order to be spared the future tax hits.”
That all depends on your tax rate now vs in the future
Well then make sure not to make any extra money then. Might want to tell your boss (if your an employee) to not give you a raise or extra hours. If your self employed the don’t take on any additional customers.
Are you retired?
See, I want to pay more taxes. Not really but here is the issue. my tax rate on any extra dollars are at the highest tax rate but I still want them. Maybe I’m greedy. I don’t know. If I make more I pay more taxes. I do have kids in college so extra would be nice. Christmas is coming up and more money there would be nice. I would like to save more and extra money would help there also. My wife and girlfriend (same person) also wants to make more. If I make more the I have to pay more taxes. I will need to rethink your philosophy. See I have paid more taxes every year than the previous one going on almost 30+ years of adult life. I’m a sucker.
Maybe I don’t understand what your saying. Maybe ping your buddy and see if his Fed + SALT works the same way mine does.
I still say kill all special interest deductions and go Flat tax but I am dreaming.
“Not that they’ll tax the 401K withdrawals; they’ll just scale back government payments to you (since you have “other income”).”
I almost sounds like you’re advocating being irresponsible and not saving money, in order to have government benefits. That sounds a lot like welfare.
I know that’s not exactly what you’re saying. Because the government might come and steal our 401(k)s. Or lower Social Security payments. On the other hand, it doesn’t really justify being irresponsible. As conservatives we need to do the right thing anyway.
“You want to pay tax on 4 million or 350 thousand ?”
I prefer to pay the tax on 4 million and keep what is left of the 4 million. It will still be much much more than the 350,000 minus tax.
“The ROTH IRA is not an option for people over a certain level...”
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Yes, that’s true. But folks over that limit for making a Roth IRA contribution can still make a “traditional” IRA contribution and then transfer that traditional IRA amount into a Roth IRA account. So, it’s a mystery to me why they keep the restriction on INITIALLY contributing directly to a Roth IRA when you can end up with the money LEGALLY in a Roth indirectly the next day by transferring it.
There are no sources. Media is doing the same crap they always do. For some it hits their nerve. Most people are ideological until it personally effects them and then they stop. Very few truly believe in something so strongly that they will personally sacrafice for their belief.
I feel so stinky that social security is a fraud and danger to the future, I would relinquish all claims in order to let me and mine out of the trap. Same with Medicare.
I am also of the opinion that we need a flat tax with no deductions! No kids, no SALT, no mortgage, .... nothing. Each individual (adult) regardless of marriage status should be forced to pay something (minimum) and at some point a percentage of generic income as a tax to Feds, state, local ... let’s get rid of the thousands of hidden taxes.
Oh well - dreaming. I think the unknown scares people and taxes have both a logical and emotional response. So irrational responses become the first reaction. We pay too much for way too little. Waste, fraud and abuse are rampant by our political class.
Sure it is if the pay-for is a spending cut.
Evidently you don’t get the math. 350 thousand invested in a Roth 401k invested in the top 500 S&P stocks over 40 years could net you as much as 4 million bucks non taxable. The only tax you would have paid is on the 350 Grand you paid in the year you earned it. So on around ten grand a year. That’s 3.6 million dollars tax free.
God forbid they would ever cut spending to pay for a tax cut.
Not for high income earners. Better to pay taxes on your 401K when you’re retired and income is a lot lower.
Only the Republican Party could float an idea this politically stupid. Same for not making sure everyone gets a tax cut. The closer we get to a flat tax with no loop holes the better any tax is. But the second best thing is depriving the gov of revenue. So cut taxes do it in any manner that is politically feasible. Take all tax cuts that can be had. Leave the deductions in place and dream up more. But just get started on starving the beast.
I want to be able to send in my taxes using a form no larger than a 3 X 5 note card. What do you make? Send in X%. If God only asks for 10%, why can’t the government?
Your basic problem is that you’re trapped in the People’s Democratic Republic of California. And you want tax payers in the Red states (who, for most, don’t have high deductions for state & local taxes) to, in effect, subsidize the atrocious taxes your state & local governments extract from you. I understand your selfish wish to protect your subsidies as I live in the blue state of Maryland and receive similar federal tax subsidies for the high state & local taxes my family must pay here.
But I would support the tax “reductions” (for most people) & tax simplification even if we actually end up with somewhat higher fed taxes because of our reduced itemized deductions. The loss of these state tax deductions would result in more people opposing high Maryland taxes. And that would be a good thing. And the resulting large increase in our national economy would be a good thing for our nation and Americans generally.
Defined benefit pensions don’t work out mathematically. Soon the only folks getting them will be government employees, because the taxpayers are on the hook when the plans are underfunded.
You can also invest your entire maximum contribution in a Roth vehicle in your 401(k) if the employer offers it.
Or, as someone once said, don’t believe
it until it’s been officially denied.
Let’s really make Wall Street happy!
Drop the taxes on cap gains and dividends. Then scrap 401Ks and IRAs.
You are probably right, but those that thought 401K were the answer are finding out that was not true. And these companies love the fact that they don’t have to provide pensions because it just gives them a ton more money to line the CEO’s pockets. I mean 60 million for a year for a CEO.....really? The companies have gotten so selfish and don’t even give a decent salary for workers. Companies are loving the new 401K rules as they won’t have to give out as much money to their employees. I am all for capitalism but dang these companies have embraced socialism big time.
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