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Subject:  Re: 401(k) and foolishness revisited Date:  4/22/1998  9:26 AM
Author:  JeanDavid Number:  2980 of 88536

<It appears that there is alot of uncertainly in future tax rates. The Republican propose abolishing the tax code by 2005 to force a rewrite of the tax laws.
Proposals include a flat tax, a consumption (sales) tax, and lowering the capital gains tax. It appears that the flat and consumption tax would favor money put in today's tax deferred accounts and lowering the captial gains tax would benefit taxable accounts.>

I doubt you should place too much emphasis on directing your investments based on what your future tax rates might be. What if they imposed a wealth-tax (like a property tax): say 2% of your net worth each year? Even if you earned nothing, spent nothing, you would still get to pay the tax. Only way to avoid it would be to get rid of the wealth before the tax record date.

Before you say IMPOSSIBLE! (I admit perhaps unlikely), my property tax is imposed exactly this way. A percentage of what they say it is worth each year. They are taxing me already on my UNREALIZED capital gains. Why not IRA's too? or any other wealth?
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