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Isn't a VAT just a sales tax? So if I withdraw funds from a Roth or my savings account and buy lunch in either case I pay the VAT/sales tax.

Also unless the income tax is eliminated, I fail to see how the addition of a VAT would have any effect on a Roth vs regular IRA. In either case the funds are subject to income tax (Roth before and regular IRA at withdraw).

In any event the issue tax rates can change. The state of Georgia can up the sales tax from 7% to 70% -- if I spend money I have to pay that. Congress can move the marginal rate from 15% to 5% or 55% -- if one has income one pays the tax.

Gordon
Atlanta
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