[Rhodes22-list] Rep. Henry Waxman, D-Calif/Let the games begin.

[Michael Meltzer]

Brad rummy set me off on a "strange thought train", want a interesting
research project :-)

It goes something like this:
"what is the net present value of taxed deferred savings" and how much of
the national debit does it cover.

1)I save 1$ in my IRA.
2)I get a 3-4% yield over t-bills over 20 years in the stockmarket(IIRC
that's about average)
3)i use 8% for an example, at the end of 20 years I have 4.66 dollars, minus
the starting one dollar I paying tax on 3.66 profit. 
4)like we all know it is only deferred tax.
5)I am clueless on future tax rates and % of collection.
6)but the interstate spread does cover the government cost of borrowing so
it should be a net decudecution of national debit
7)any accounting system like to be accrual, so what is this impact on total
debt :-)
8)the government likes to calculate the cost of these programs, so why not
the befit

-mjm

The ghost of Regan lives :-) 


-----Original Message-----
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[mailto:rhodes22-list-bounces at rhodes22.org] On Behalf Of
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Sent: Sunday, November 12, 2006 10:33 AM
To: rhodes22-list at rhodes22.org
Subject: Re: [Rhodes22-list] Rep. Henry Waxman, D-Calif/Let the games begin.

Rik,
It's similar to buying a vehicle. If you ask most buyers what they can  
afford, they will tell you $250.00 per month. They don't care about the term
or  
the interest rate, just what the monthly payments are.
 
Rummy
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