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re: Biden to end 401k Tax Benefits
Posted on 8/25/20 at 3:03 pm to Puffoluffagus
Posted on 8/25/20 at 3:03 pm to Puffoluffagus
quote:
This is mostly just postulation. Biden wants to revamp 401ks as high income earners are the ones who benefit the most from the tax advantage.
I.e if you have income taxed at the 35% bracket, then every dollar you contribute to a 401k reduces your tax burden at that rate.
Whereas if your highest income is only taxed at the 22% bracket, then every dollar you contribute reduces it at the 22% rate.
That's why you contribute to a Roth when you are in a low tax bracket.
I think the whole 401(k) setup is ridiculous but not for the reasons Biden mentioned.
0
Posted on 8/25/20 at 3:08 pm to OleVaught14
Sounds like Biden and his handlers want to create equal outcomes without regard to performance.
The middle of March would have been a good time to move all of that Social Security money out of the government "lock-box" and put it into the stock market.
The middle of March would have been a good time to move all of that Social Security money out of the government "lock-box" and put it into the stock market.
Posted on 8/25/20 at 3:09 pm to Auburn1968
“Equity” not “Equality”
Posted on 8/25/20 at 3:59 pm to OleVaught14
quote:
Wholly removing any tax benefit for retirement savings and provide a credit of 25% instead (often this proposal includes a limit to the credit; this particular proposal doesn’t specify such; also, note that this was prior to the 2017 tax law which dropped tax rates).
25% of what? AGI? MAGI?
And WTF will the limit be? That's the most important part.
It really pisses me off that you can't ever really know a politician's viewpoint on something. You'll want information around a particular issue, and you'll go to their website, and the explanation will either be really vague or like 3 sentences. Sometimes both.
Finance is the main reason I always stop short of voting democrat. Their fiscal policies inevitably frick the middle/working class right along with the ultra rich.
Posted on 8/25/20 at 6:03 pm to lsujro
quote:
This is an exemption from a tax, not some right you have
Incorrect. It is a DEFERRAL of tax. You are deferring compensation today and then taxed upon distribution in retirement as ordinary income.
Posted on 8/25/20 at 8:55 pm to jclem11
quote:
Incorrect. It is a DEFERRAL of tax. You are deferring compensation today and then taxed upon distribution in retirement as ordinary income.
This is why the fear of a retroactive tax seems a little silly to me. You’re already gonna pay taxes on it anyway. If anything, the risk seems to be a change in the way future contributions are handled.
Someone mentioned Roth - maybe I’m crazy, but if the concern is a massive overhaul to tax advantaged retirement plans, Roth IRA’s scare me more than anything. Because you’ve already paid tax on the contributions, so you’re fricked if they make the gains taxable.
Posted on 8/25/20 at 10:27 pm to lostinbr
quote:
Someone mentioned Roth - maybe I’m crazy, but if the concern is a massive overhaul to tax advantaged retirement plans, Roth IRA’s scare me more than anything. Because you’ve already paid tax on the contributions, so you’re fricked if they make the gains taxable.
Yep, my concern as well. Would completely change how we save for retirement
Posted on 8/25/20 at 10:47 pm to OleVaught14
He also said he won't raise taxes on anyone making less than 400K a year.
We've had nearly 4 years of massive wealth redistribution to the 5%, largely through the tax code.
That needs to be reversed.
Start with the carried interest horse$$$ loophole.
We've had nearly 4 years of massive wealth redistribution to the 5%, largely through the tax code.
That needs to be reversed.
Start with the carried interest horse$$$ loophole.
Posted on 8/26/20 at 7:27 am to Overbrook
quote:
We've had nearly 4 years of massive wealth redistribution to the 5%, largely through the tax code.
Are you saying that the poor people's wealth is being redistributed to the rich due to the tax code?
or
Are you saying that the wealthy are redistributing the wealth to themselves thus not actually redistributing the wealth?
I find it hard for anyone to say the wealth is being redistributed to the rich especially through the tax code. The high earners still pay way more in taxes and it isn't even close. The vast majority of low earners received a cut in taxes with the TCJA so I am curious how that is redistributing the wealth to the high earners. Even if you are going the route of the national debt, ultimately it will be paid down by high earners (if it is ever paid down). The BS line that the left spits out is that the high earners on average got a bigger savings but that is because they also pay much higher in taxes to begin with.
quote:
He also said he won't raise taxes on anyone making less than 400K a year.
I sure hope you don't believe this nonsense. This one idea alone would ultimately lead to raising taxes on people making less than $400k a year. Repealing the TCJA in any fashion would lead to increase in taxes on almost all people making less than $400k a year.
This post was edited on 8/26/20 at 7:33 am
Posted on 8/26/20 at 7:47 am to RebelExpress38
quote:
Please tell us more
Confusing IRAs with Social Security maybe?
Posted on 8/26/20 at 7:56 am to OleVaught14
Elections have consequences.
Tell your friends.
It's an uphill climb against the millions of dead democrats that will vote by mail this November.
Tell your friends.
It's an uphill climb against the millions of dead democrats that will vote by mail this November.
Posted on 8/26/20 at 7:57 am to hottub
quote:
You misspelled Social Security
Yeah, SS has such a great government handled return on investment
. What could possibly be wrong with a retirement account that pays 2% interest when inflation has averaged 4%. That's a great deal (for budget bilkers in DC). Posted on 8/26/20 at 7:59 am to Overbrook
quote:
He also said he won't raise taxes on anyone making less than 400K a year.
I’ll get to keep my doctor too.
This post was edited on 8/26/20 at 8:00 am
Posted on 8/26/20 at 10:05 am to Overbrook
quote:LOLok
He also said he won't raise taxes on anyone making less than 400K a year.
Posted on 8/26/20 at 1:33 pm to Puffoluffagus
quote:
I.e if you have income taxed at the 35% bracket, then every dollar you contribute to a 401k reduces your tax burden at that rate.
Whereas if your highest income is only taxed at the 22% bracket, then every dollar you contribute reduces it at the 22% rate.
The flip side of that notion is that the 22% or lower set has already gotten a big tax advantage while the 35% group has already been screwed by "progressive" taxes.
Go a little bit lower than the 22% group and the government sends them money.
Posted on 8/26/20 at 4:26 pm to OleVaught14
I've never seen anyone successfully run on a campaign of raising taxes and lowering benefits to workers, but I guess it is worth a try
Posted on 8/26/20 at 6:05 pm to OleVaught14
My god!
The current restrictions are already ridiculous. They discourage savings.
Why on earth would a government try to discourage wealth accumulation!?
The current restrictions are already ridiculous. They discourage savings.
Why on earth would a government try to discourage wealth accumulation!?
Posted on 8/27/20 at 10:58 am to ELVIS U
quote:
I've never seen anyone successfully run on a campaign of raising taxes and lowering benefits to workers, but I guess it is worth a try
Well when a near plurality of the population has no savings or retirement assets it is any easy way to get votes.
Posted on 8/28/20 at 7:08 am to OleVaught14
Them rotten democrats always try to screw the working people & the people who prepared for the future. The uneducated and unprepared people get the handouts.
Posted on 8/28/20 at 8:35 am to bod312
quote:
The vast majority of low earners received a cut in taxes
A lot of low earners not only don't pay taxes, they get a check from the government.
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