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To: groanup
Actually, for most of them it would be a tremendous boon. They wouldn't be taxed when they HAVE to withdraw their qualified money at age 70 1/2. As it is now the HAVE to take their money out so Uncle Sam can get his. Nice, huh?
Most retired people have a much lower effective tax rate than younger people. In 2002, the total effective tax rate (minus excise) for elderly childless couples was 7.6%. The average income tax rate was 2.7%. Most of the distributional analysis of a NRST has shown that it shifts the overall tax burden from the young to the old.

The FairTax would not be a boon to retired people. One of the groups that would fight it the hardest would be the AARP.
33 posted on 05/28/2005 2:34:26 PM PDT by Your Nightmare
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To: Your Nightmare
The FairTax would not be a boon to retired people. One of the groups that would fight it the hardest would be the AARP.

LOL. So you're telling me that if the trillions of dollars now tied up in qualified plans becomes non-taxable it wouldn't be a boon to retirees. Now that's logical. ???

39 posted on 05/28/2005 5:59:16 PM PDT by groanup (http://fairtax.org)
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