But aren’t 401K and pension funds untaxed now?
You as an individual don’t pay any tax on these earnings (until withdrawn) but the corporation must pay a tax on these earnings even if they are going to your retirement fund.
This means that right now every worker who is saving for retirement is being taxed at a marginal 35% rate! (higher if Obama is elected)! If a corporation has $100 in taxable income, 35% goes to pay taxes, that leaves only $65 to the retiree’s pension or 401K.
With the contribution limits on 401Ks and pension plans, these taxes are being paid by MIDDLE class Americans. We conservatives want ALL Americans to become owners in our country. This proposal would increase the incentive for people to save, become owners, grow AMERICAN companies, and create jobs.
I estimate the cost of this proposal at $54 Billion (less than the cost of those $500 checks we got in the mail)
Moe Lane
Steve Maley
Dan McLaughlin
Neil Stevens
Daniel Horowitz
There are really no places
Doc Holliday (Diary) Saturday, October 25th at 10:52PM EST (link)where taxes should not be decreased. The government lives by taxes, if they reduce them, they reduce their own existence. Would you ask a fish to swim in a smaller bowl? would you ask a Lion to eat fewer prey?
The only way to get our country back on track is to lower taxes as much as we can. Those that say we need taxes are using hyperbole, we are consumed by taxes and waste. If we got rid of just half of the waste, and gave back the money to its rightful owners, our econom would be on fire.
Molon Labe!
Contrast to Democrats
quill67 (Diary) Saturday, October 25th at 11:28PM EST (link)This is an idea I’ve been kicking around for a while. Does it make sense to tax middle class people at 15% on their earnings but then tax at 35% their retirement savings?
I mention it tonight because it offers a nice contrast to certain Democrats who have proposed eliminating 401Ks (i.e. taxing people’s retirements)
Politicians complain that we don’t save enough, but then turn around and tax at 35% the rewards to saving!
if they wanted to
ouwant2 (Diary) Sunday, October 26th at 10:23AM EST (link)really help the economy, then they would remove all payroll taxes for any new USA hire made for the next three months.
Companies would go on a hiring frenzy.
The tax revenue would be returned to the gov in the form of Personal tax plus sales taxes.
Dont send every American another $500 to spend on foreign made crap. Use the money to get more Americans employed.