Quote:
Originally Posted by masraum
If I understand what was being said, I think he was talking about a radical change, like doing away with income tax and making a federal sales tax. If that happened, they could say "yes, you can withdraw all of your IRA and we won't tax it." But then when you go to the store to spend the money, they won't know or care where it came from, and they WILL tax it. At that point, depending upon which IRA it was, it would either be taxed once or twice.
But, maybe I didn't get what he was saying.
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Yeah, that was pretty much what I was saying.
It may not be as radical as getting rid of the income tax completely, but at least the addition of a VAT.
I believe (that the government believes) there has to be a way to tax 'un-earned' and 'un-claimed' income. VAT does that by taxing most everything.