Quote:
Originally posted by Mmmm, Burger (C.J.)
Are we talking about different things?
IRAs are revenue neutral, they just time shift the taxing.
Roth conversions move up the taxation event for those who chose it.
Having either--creating some tax advantage, encourages savings.
But I'm talking about how to pay now for a reduced tax base resulting from increased IRA/401k savigns. So, having increased the deferral of taxes by liberalizing IRAs, you claw back that money by giving others an incentive to pay the taxes now.
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I thought you were suggesting that raising the cap on IRA contributions might be revenue-neutral for the government, in that contributions are taxes later, though perhaps at a different rate. I don't think this is likely, nor do I think you think it is likely. But if it is, wouldn't that mean there would be no incentive for taxpayers to put additional $$$ into their IRAs?
Agree that you could offset the IRA thing with the Roth thing, and have nothing useful to say about that. Except that you would be deterring people from putting money into Roths, but you know this.
