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So, in essence, we punish responsible people who save for retirement. No thanks. Also, one unintended consequence of this policy would be that the MINIMUM inte
by outside1234 11y ago
So, in essence, we punish responsible people who save for retirement. No thanks.
Also, one unintended consequence of this policy would be that the MINIMUM interest rate you would have to pay would be 3.75% because below that it makes more sense to just buy a gold bar and bury it in the backyard vs. lend it out.
Basically, the way you can imagine the impact of that is that your mortgage interest would (today) essentially double. Again, no thanks.
- arama471 11y agoGenerally wealth taxes (and many other taxes) will not apply to retirement funds (when said funds are in an account specifically for those)[1] [1] http://guides.wsj.com/personal-finance/retirement/what-is-a-401k/ http://guides.wsj.com/personal-finance/retirement/what-is-a-...
- outside1234 11y agothats great, but 1) a 401k is not sufficient for retirement and 2) the other caveat (adding 3.25% to any interest rate) is far worse.
- hackuser 11y ago> the MINIMUM interest rate you would have to pay would be 3.75% because below that it makes more sense to just buy a gold bar and bury it in the backyard vs. lend it out. I don't quite follow. I have to pay a tax of 3.75% of the gold bar's value whether I keep it or lend it. Even if I only can lend it at 2%, that's still better than nothing.
- redblacktree 11y agoHe's suggesting that you avoid taxes by hiding your assets.