[Rhodes22-list] Tax Advice? 401k's

[Rik Sandberg]

Bill,

Hmmm ..... I suppose it would be possible for the rich to pay less,.... 
but only if they want to spend money like a poor person. Seems to me, 
the sales tax on that new Mercedes or Beemer is likely to be *just a 
bit* higher than the sales tax on that 2 year old Chevy. 'Course, I 
could be wrong, maybe all the rich people will start buying 2 year old 
Chevys (cough cough) ..... Ya think??

Rik

Bill Effros wrote:
> Could be.  It's seductive.  Although I think the people with less will 
> catch on to the fact that they will pay more, and the rich will pay 
> less if this is enacted.
>
> Bill Effros
>
> Joseph Hadzima wrote:
>> Howdy Bill:
>>  
>> I'm thinking that we'll have a national sales tax for the government 
>> to get back income last through the 401K, and IRA programs.  It's so 
>> easy to sell too!  Everyone thinks a sales tax will get the "rich", 
>> when it will actually touch everyone!  It also won;t sound like we're 
>> taxing people on fixed income, but we will.
>>
>> HADZ (a.k.a. joe)
>>  
>>
>> ----- Original Message ----
>> From: Bill Effros <bill at effros.com>
>> To: The Rhodes 22 mail list <rhodes22-list at rhodes22.org>
>> Sent: Sunday, November 12, 2006 12:17:56 PM
>> Subject: Re: [Rhodes22-list] Tax Advice? 401k's
>>
>>
>> Rummy,
>>
>> Slim, of course, must contribute both sides of his 401K.
>>
>> I, too, put aside as much money as possible for reinvestment while 
>> others bought Hummers.  This is central to any retirement strategy.
>>
>> By not having money in 401ks I was able to make investments, using 
>> money that had never been taxed, in things that never will be taxed.
>>
>> My security comes from investments that are not subject to future taxes.
>>
>> I believe the huge debt that has been incurred will be paid by all 
>> segments of the society, not just the young.  Inflation and increased 
>> taxes on 401k distributions will force older people to pay for some 
>> of the things they awarded themselves at earlier times.
>>
>> (Philip--this is what I mean when I say taxes are always about 
>> redistributing wealth.  The young will take this back from the old.)
>>
>> Bill Effros
>>
>> R22RumRunner at aol.com wrote:
>>  
>>> Bill,
>>> One aspect of the 401k that you have forgotten is that many 
>>> employers match  their employee contributions up to a certain 
>>> percentage. This to me is free  money. This also happens to be one 
>>> of the few ways that many people, including  my wife and I, are able 
>>> to accumulate a small fortune over a long period of  time. I am not 
>>> a financial wiz, nor do I want to be one. I have found better  ways 
>>> to use my time. Drinking and sailing come to mind.
>>> We have been putting the maximum amount allowed by law into the 401k 
>>> for  the past twenty one years. It was hard when we saw friends and 
>>> co-workers  driving fancy vehicles, buying new homes and we drove 
>>> used vehicles and had  modest living quarters. Many of these people 
>>> today have no savings, still owe on  a second or third mortgage and 
>>> have car loans that would choke a horse.
>>> We look at our current nest egg and other investments and we're 
>>> looking at  a good chunk of change. Odds are that we will never 
>>> spend the principal and it  will only continue to grow.
>>> I am strongly in favor of 401k's, especially for a long term 
>>> investment.  It's called security.
>>>  
>>> Rummy
>>> __________________________________________________
>>> Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
>>>
>>>       
>> __________________________________________________
>> Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
>> __________________________________________________
>> Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
>>
>>   
> __________________________________________________
> Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
>