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Subject:  Re: Roth IRA Contriubtions & Conversions Date:  2/5/1998  10:10 AM
Author:  TMFPixy Number:  1632 of 88544


Good post!

<<The affect of a switch from income tax to consumption
tax affects traditional IRAs, ROTH IRAs and after tax
savings differently. Lets assume a switch to consumption
taxes with no increase in Government spending, so the
consumption tax replaces the income tax dollar for dollar.>>

Big assumption IMHO. While I see some kind of national VAT or sales tax, I don't see it standing alone. Far from it, in fact. I think our fearless leaders will implement some kind of consumption tax in conjunction with an insidious income tax (applicable only to the "rich" of course) at a lower rate than today's. In that case, my statement stands. ALL savings will be affected adversely, albeit at differing levels.


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