This will be like boosting minimum wage. It’ll just cause people to bid up rents even more. It’s good for landlords and bad for renters.
I heard Donald may want to tax your 401k contribution. Kinda funny TBH…
Honestly, considering how little people contribute it may not get much opposition. The 401k is only used by higher income people. It’s weird what people perceive vs. reality though. The public goes crazy at the idea of removing the mortgage interest deduction but only 20% of returns use it when itemizing. Most of the benefit goes to high earners with >$500k mortgage. It’s nowhere near the tax break that encourages middle class home ownership that we’re told. I’ve given up on this country ever having a logic and fact based discussion on anything. It’s all emotions and hysteria.
If removing more tax deductions, tax rate should be lowered. Also tax rate needs to be flatter or flat. Deductions were used to mitigate the higher tax rate at the higher income level, removing it requires compensating by a flatter tax and a lower tax rate.
I like the idea of simple tax plan. The total tax revenue should be reduced no matter what they do.
A complex taxation scheme provides opportunites for unfair lobbying and makes the useless politicians more powerful. Learn from other countries and make the tax system simple and easy. Wage earners should not need to file tax return. Only business owners would need to file tax return. Tax code should be simple enough that all the tax deductions from your paycheck is accurate and it matches your tax liability 100%
I’d make it post card simple. Any income below poverty line is exempt. Then all income above that is taxed at a flat rate.
It’s crazy you get a deduction for donation to a non-profit, and the non-profit doesn’t have to pay taxes. Especially when many of the major non-profits spend over 50% of money raised on salaries. It’s scary how little of the money raised goes to benefit the cause.
401K is used by whom?
I am always laughing at the deflection. The guy who never discuss logic of people being killed by Nazis is complaining about not discussing anything logically. OK.
One of my first jobs in the tech industry was in San Carlos. Then, earning $10/hour was good. And most of the workers I enjoyed talking to, they had good or bad emotions about 401K. It was then, and it is now, the way companies abandoned the retirement compensation they usually had for their employees. 401K, was in the beginning an executive privilege. But as I said, the companies themselves sought it as a way to get rid of their pension liabilities. 401K then it’s used universally. Specially by small companies with 10 or more employees. And they are not rich.
It seems there is a $19 trillion in 401Ks around. I may be wrong, but it doesn’t matter the number, the ignorant, uneducated guy in the white house is relying on the bleeding of those who worked hard to make his numbers appeal to his base, which by the way is made out of the same people he plans to bleed.
It is one of the topics we, the ones advocating for a conservative approach to retirement using the indexing market use for educational purposes. Either you are taxed now, thus making 401K worthless, or you are taxed later, when, no matter what, taxes are going to be increased because as we go, between the Trump’s family draining our secret service’s budget, golfing on his own places to cash in, and ignorant ideas, we are going broke.
We’ll see, as the new budget is worked in secrecy. Oh boy! Did I say secrecy as the Trumpcare? Welcome to Amerussia!