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Does the fact that more rich do it mean it's wrong? Or that low and middle income should use it as a model and the practice should be encouraged? I mean, if pri
by czbond 5y ago
Does the fact that more rich do it mean it's wrong? Or that low and middle income should use it as a model and the practice should be encouraged? I mean, if private citizens can build themselves up without being beholden to social security and Wall Street - why is this bad?
What if - instead of the government keeping us to the lowest common denominator (social security) they encourage, educate, and allow everyone to be their highest common denominator?
- xxpor 5y agoNo one's saying you can't get rich. You have to pay taxes on the gains.
- czbond 5y agoAgree - everyone should pay taxes. What I'm suggesting is leaving the "no taxation on this type of gain [IRA]" and promote it to the entire citizenry as a method of not requiring social security, or not needing to support as many people on social security. The governments job should be to support people being OFF SS based on their own supportive, good choices.... If more people were off SS, then the entire governments budget would go down - which requires less taxation. We've taken the opposite approach.. support consumerism and spending, thus the government taxation and expanding budgets grow higher as our population ages to support a wider group.
- selykg 5y agoI'd be fine with this, but the problem is that the rich, who are utilizing these loopholes, are the same people not paying their employees a fair share so that they COULD support themselves and their future better. The wealth gap is freaking massive and growing. How are low and middle class people supposed to support themselves when they can't even get fair wages to support themselves and plan for retirement?
- newhotelowner 5y ago> Or that low and middle income should use it as a model and the practice should be encouraged? Problem with the low/middle income is that where to begin? Rich people hire lawyers to do the work. Low/middle income like myself knows this is available but can't utilize it as we don't know where to start, how to do it, who to contact and can't afford to hire a lawyer.
- ghaff 5y agoI'm not sure it's so much about not knowing where to start as it is that complex strategies that require lawyers and accountants above and beyond routine tax filings quickly start costing more than any potential tax savings unless there's a lot of money involved.
- newhotelowner 5y agoI know tons of people who don't invest in 401k because they don't understand. I know tons of people don't know how our income tax rate bracket works. I just learned yesterday that you can invest in bitcoin using self directed IRA. I am trying to figure out how to do it, but kind of lost.
- belltaco 5y agoIf it's being used to avoid taxes then yes, the loophole should be closed.
- PaulDavisThe1st 5y agoCongress did not intend that the Roth IRA, given the rather low annual contribution limit, would allow someone to accumulate essentially unbounded amounts of gain in a tax-free way. If you read up on what Thiel (and presumably some others did), yes, they successfully invested using their IRA, but yes, they also took advantage of the tax status of a Roth to avoid paying capital gains tax. They will not be retroactively penalized for this (the law doesn't work this way), but their doing this has now made at least some in Congress want to prevent this from being possible in the future, since it was not what the Roth IRA was intended to allow.