Posted on 07/08/2025 11:11:13 AM PDT by reed13k
VIDEO discussing potential tax reductions and implications for IRA holders
(Excerpt) Read more at msn.com ...
Everyone needs skin in the game.
Changing tax law is not very easy.
An argument could be made to plan retirement with part in tax free growth Roth and part in tax deferred growth (traditional IRA/401K).
Convert some to Roth IRA during years you're in a really low tax bracket (i.e. do contract work and had little business that year). But don't convert it all to Roth IRA (and pay taxes on conversion) if there's a chance that you'll be in a low enough income in retirement to not be taxed.
Another issue is that some tax credits are non-refundable. If you'll engage in activity in retirement that will generate non-refundable tax credits (i.e. I might add solar to a down-sized home, if we were having this discussion before the BBB took away residential solar tax credits), then in retirement you can convert some of your tax-deferred IRA/401K money into Roth IRA money (generating tax activity) and use up the tax credit (thus converting to Roth tax free). If you try to take advantage of non-refundable tax credits in a year you have no taxable income, you don't get the tax credit (unless the tax credit is one that rolls to the next year, assuming you'll have taxable income that year).
...AND CUT UNCONSTITUTIONAL FEDERAL GOV'T. No deficits.
Instead of that I’d like to see no tax on retirement investments period. Maybe with a cap. Say first five million or something like that.
“Everyone needs skin in the game.”
Absolutely agree - even if very low, everyone should pay something. Low income - just make the tax form very simple.
This is not a good idea. Everyone needs to feel the pain of spending. We’re moving toward a world where the people vote themselves money paid for by the “rich.” No incentive to cut spending.
HOORAY President Trump!
Social Security reform could save lots of money. Too bad it's a third rail issue. They could incorporate no tax on individual retirement savings as an incentive.
Trump’s tax vision is irrelevant.
Congress passes the tax laws, and they get very rich doing it. Nothing fundamental is going to change.
skin = national sales tax and permanent elimination of all income taxes ...
I don’t think it’s the third rail everyone has historically been afraid to touch anymore. It’s ripe for reform. As long as that doesn’t include raising the age to 75 or something.
In the video Lutnick said it would only happen after achieving a balanced budget in two or three years and would require approval by Congress.
Lutnick is the guy that also said in an interview with Trump that they would balance the budget and pay down the debt within four years.
https://www.facebook.com/watch/?v=498087739777949
Nothing real here folks - you can go back to your regularly scheduled schlonging.
“ They could incorporate no tax on individual retirement savings as an incentive.”
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The current Roth IRA & Roth 401K are plenty incentive for those willing to sacrifice a little now for a lot later.
“Everyone needs skin in the game”
OK, though how much skin are we talking? Let’s start with the fact that the initial Federal income tax rate when first enacted was about 2% on incomes of $500,000 to $600,000 in today’s confetti-buck cannon dollars.
And that’s part of the point, too. Unlike the states, the Federal government has a printing press, or whatever you want to call it.
Today’s rates start at 15% on incomes of $35,000. This is insane when you think about it. We’ve all got “skin in the game” when the government is destroying the purchasing power of the currency unit of account, that’s for sure. Savers are punished. The whole thing is basically a twisted, sick scam. Brought to you buy “experts” and Nobel Prize winning economists, don’tchaknow.
Yup, otherwise nobody cares when democrats crank up the tax rate
Its 12% for an income of $11,601 to $47,150 for a single filer with a federal standard deduction is $14,600.
So if you make 35 thousand your federal tax is $2,448. Thats not insane
$35,000-$14,600=20,400x12%=$2,448
Yup, everyone. No skin in the game no vote or much else for that matter. Everybody needs to write a check every quarter like I have. It hurts and it hurts badly but it keeps your blood boiling.
+1
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