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But how do you save for retirement when most of your income goes to expenses? It's not the tax rate on investment that keeps the middle class from investing - i
by dmalvarado 9y ago
But how do you save for retirement when most of your income goes to expenses? It's not the tax rate on investment that keeps the middle class from investing - it's a lack of funds.
- vasilipupkin 9y agothat's a different issue. To the extent that they have funds and do investing, their ability to save for retirement will be hurt by raising taxes on investment income.
- the_gastropod 9y agoRetirement accounts (401k, IRA, 403b, etc) are unaffected by taxes on investment income (capital gains, dividend payouts, etc.) Maxing out those retirement accounts (~$23.5k per person) is far more than most people save each year. So I don't think raising taxes on investment income would impact retirement much at all.
- vasilipupkin 9y agoretirement accounts are exhibit A in why it's good to tax investment income at a lower rate. they are basically investment income taxed at zero.