Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Bigun
Thanks for the suggestion. I read that document a while back when it was first posted on the fairtax.org site.

The only paragraph in that document that is germane to this discussion:

The FairTax delivers a tax holiday on IRAs and other tax-deferred plans.
The income tax imposed on investment income and pension benefits or IRA withdrawals is repealed. No form of savings or investment is taxed. Pension funds, IRAs, and 401(k) plans has assets of over $11 trillion in 2003. An income tax deduction was taken for contributions to most of these plans. All beneficiaries and owners of these plans expected to pay income tax on them upon withdrawal, but are not required to do so once the income tax is repealed. Roth owners and post-tax retirement savers break even.
And the only sentence from the above germane to this discussion is the last one where this issue is glossed over again.
120 posted on 09/17/2005 10:42:10 AM PDT by upchuck ("If our nation be destroyed, it would be from the judiciary." ~ Thomas Jefferson)
[ Post Reply | Private Reply | To 114 | View Replies ]


To: upchuck

That's not glossed over. What it is trying to tell you is what I was trying to get across earlier - but apparently didn't.

What that says is that you'd pay the hidden taxes under the income tax or pay the sales tax under the FairTax which is just about the same. It says you'll pay now or pay later but the difference is with the FairTax you have some control over timing and amount especially since not all things are taxed. If you're expecting to get off scott-free under the income tax, even, that won't happen as I've explained.

You can disbelieve the effect of embedded taxes if you choose, but they are there and they cost you what is, in effect, a tax right now. In fact, with your Roth there's a good chance you'll be hit with some regular income tax on some of the withdrawals in addition to embedded tax costs - and you seem blissfully unaware of that. It's quite likely you'll pay even more in taxes including the hidden taxes under the present system than under the FairTax.

You get to choose your own poison but a real big difference is that with the FairTax the US economy will be greatly expanded and costs of things will decline whereas under the income tax they will just keep climbing.

The statement in the last sentence is quite true but you seem to not understand it - or perhaps don't wish to.


121 posted on 09/17/2005 11:03:28 AM PDT by pigdog
[ Post Reply | Private Reply | To 120 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson