NationStates Jolt Archive

There was something circulating around the Internet about Nancy Pelosi wanting to impose a Windfall Retirement Income Tax. Apparently it's a tax on 401ks, IRA, Mutual Funds etc. Now this seems to be nothing more than a Myth as stated here (http://lighthousepatriotjournal.wordpress.com/2008/02/14/myth-blaster-nancy-pelosi-wants-windfall-tax/)

However, this does bring up an interesting point. Should Retirement Income be taxed, should IRAs, 401k, and Mutual funds be taxed? Personally I don't think so, I mean you spend 40 years of your life working 10 hours at a job that you may or may not like, and your reward should allow you to enjoy the fruit of your labor. I mean Gov. Co. already taxes us on everything else, retirement funds should just be left alone.

I'm not sure. I'll go with a tentative 'no' for now, but if they ever decide to privatize Social Security, then absolutely they should tax them.

You mean there are blatantly false rumors out there slandering the current most powerful democrat/woman, Nancy Pelosi, in the country? I am shocked. Shocked I say! :rolleyes:


No, dont tax 401Ks. From what I understand, its hard enough just to live on those currently as it is.

You mean there are blatantly false rumors out there slandering the current most powerful democrat/woman, Nancy Pelosi, in the country? I am shocked. Shocked I say! :rolleyes:


No, dont tax 401Ks. From what I understand, its hard enough just to live on those currently as it is.

Off topic... but how did you get three thousand plus posts since January....?

Off topic... but how did you get three thousand plus posts since January....?

What do you think I do between college classes when Im not out partying or rehersing with my band :p


Ive also been here longer than since january...I think my join date is a bit...off


Also, it says 2293 comrade. 2293 < 3000 +

They should not tax retirements.

My 401(k) will be taxed when I retire, because it is pretax contribution. It bites when you work 30-40 years paying taxes every payday, then they want to tax you on your pension? Be glad you are not in North Carolina.

Our state taxes the state retirement pension, which as a government employee I am forced to participate in. They also wanted to tax the 401(k) quarterly earnings, even though that is a violation of the IRS rules. They also tax your social security earnings in this state. The only thing that does not get taxed in NC is if I pay you cash for doing a job for me. And then, it is supposed to be reported.

Hell, this state even made it a law that I am supposed to pay a sales tax on anything that I buy on line from out of state.

So, in addtion to payroll taxes, social security, medicare, I also have to pay property taxes, vehicle taxes, NC utility sales tax on my phone service, power, gas and water utility, satellite tv, non-food tax on grocery store purchases and food tax (not as high as non-food items such as diapers), gas tax, internet tax, services tax (mechanic work on my vehicle, buying tires, etc), vehicle inspection fee; and I saved the best for last. After I retire with over 30 years service in local government, I will have to pay state taxes on my wonderful 50% retirement pension, which I am forced to contribute into. As a matter of fact, NC will also impose a sales tax on the funeral services of your loved ones.

And filing taxes in NC is wonderful. What is the amount of your adjusted gross income in the federal tax return? What is the total amount of allowable deductions on your federal tax return? Add them together, and that is what I pay tax on.

There was something circulating around the Internet about Nancy Pelosi wanting to impose a Windfall Retirement Income Tax. Apparently it's a tax on 401ks, IRA, Mutual Funds etc. Now this seems to be nothing more than a Myth as stated here (http://lighthousepatriotjournal.wordpress.com/2008/02/14/myth-blaster-nancy-pelosi-wants-windfall-tax/)

However, this does bring up an interesting point. Should Retirement Income be taxed, should IRAs, 401k, and Mutual funds be taxed? Personally I don't think so, I mean you spend 40 years of your life working 10 hours at a job that you may or may not like, and your reward should allow you to enjoy the fruit of your labor. I mean Gov. Co. already taxes us on everything else, retirement funds should just be left alone.

I'm going to go with a no.

See, this is why Americans bitch about taxes so much. It's not the amount we pay so much, its the myriad of ways we pay and the rules that come with them. Hell, alot of us have to pay someone to tell us how to pay the government. Ugh.

See, this is why Americans bitch about taxes so much. It's not the amount we pay so much, its the myriad of ways we pay and the rules that come with them. Hell, alot of us have to pay someone to tell us how to pay the government. Ugh.

at least tax prep is deductable if you itemize.......;)

if you werent taxed on the money you put into your retirement while you were working, you should pay income tax on the money as you take it out of the account.

maybe it was the retirement of people who fund their retirement on the sale of their extremely expensive house that is exempt from capital gains?

I'd go with no for now.
It doesn't feel right, taxing people all their lives, and then giving them some more taxes when they're older.

There was something circulating around the Internet about Nancy Pelosi wanting to impose a Windfall Retirement Income Tax. Apparently it's a tax on 401ks, IRA, Mutual Funds etc. Now this seems to be nothing more than a Myth as stated here (http://lighthousepatriotjournal.wordpress.com/2008/02/14/myth-blaster-nancy-pelosi-wants-windfall-tax/)

However, this does bring up an interesting point. Should Retirement Income be taxed, should IRAs, 401k, and Mutual funds be taxed? Personally I don't think so, I mean you spend 40 years of your life working 10 hours at a job that you may or may not like, and your reward should allow you to enjoy the fruit of your labor. I mean Gov. Co. already taxes us on everything else, retirement funds should just be left alone.


Retirements are taxed at withdrawal now, they are taxed and penalized if withdrawn early (before age 59 1/2). The point is to encourage savings in the economy. They have always been taxed at withdrawal. They are not taxed at earning. When this was the new kid on the block it was tauted that most people live at a lower standard of living when they retire than in their working years. Therefore the savings on tax would be substantial. (That is debateable.)

Unless someone is talking about taxing retirements at the earning stage (which sets us back to Carter days) what would be the point of an IRA or 401k or any 'deferred' pay retirement plan? The deferrment of taxes is the point of having said plans. If you are going to tax them at earning stage just do away with them and stop pretending there is an incentive to save for retirement.

I don't see any problems paying for my 401k after I retire. What bit my butt was that in NC they were trying to tax you on your quarterly earnings before you retired. It led to a big lawsuit that cost NC $1 Billion dollars in repaying for the illegal taxes, interest and penalties.

I understand that if I put that money into my retirement account tax free at this time, that I will have to pay taxes after retirement, no problem. It's what they they were trying to tax in violation of the IRS rules. Hell, NC was even trying to figure out how to tax you on your Roth IRA earnings!!!

This is a bad idea. It's bad enough right now paying for medical care and all, and I feel that these people have earned the right to access their own savings without paying for it.

They should bring back the death tax, but no retirement tax

There was something circulating around the Internet about Nancy Pelosi wanting to impose a Windfall Retirement Income Tax. Apparently it's a tax on 401ks, IRA, Mutual Funds etc. Now this seems to be nothing more than a Myth as stated here (http://lighthousepatriotjournal.wordpress.com/2008/02/14/myth-blaster-nancy-pelosi-wants-windfall-tax/)

However, this does bring up an interesting point. Should Retirement Income be taxed, should IRAs, 401k, and Mutual funds be taxed? Personally I don't think so, I mean you spend 40 years of your life working 10 hours at a job that you may or may not like, and your reward should allow you to enjoy the fruit of your labor. I mean Gov. Co. already taxes us on everything else, retirement funds should just be left alone.
I've heard Jesse Jackson ask for that sort of thing... I guess if you can plan ahead and save something for your own retirement, you should be able to fund everyone else's. We don't tell the story about the ant and the grasshopper enough.

Anyhow, 401ks and conventional IRAs are taxed as you withdraw from them. The advantage is the tax free compounding. Roth IRAs are already taxed and should never be taxed again.

I find that the candidates are curiously quiet on how they will fix the programs that are in trouble. Medicare is there now. This year it pays more than it receives in tax revenue. SSI will be there soon.

Come on guys, what will you do?

Unless someone is talking about taxing retirements at the earning stage (which sets us back to Carter days) what would be the point of an IRA or 401k or any 'deferred' pay retirement plan? The deferrment of taxes is the point of having said plans. If you are going to tax them at earning stage just do away with them and stop pretending there is an incentive to save for retirement.
We do that for the money that is deposited into Roth IRAs. We still don't tax the compounded earnings and in Roth accounts, the withdrawals are tax free.

SSI is only going to get worse. Medicare and Medicate too. Perhaps we can cut costs with a national health insurence system, but really, who knows?

[QUOTE=Myrmidonisia;13580005]I've heard Jesse Jackson ask for that sort of thing... I guess if you can plan ahead and save something for your own retirement, you should be able to fund everyone else's. We don't tell the story about the ant and the grasshopper enough.

QUOTE]

No thanks - why should I save all my life to fund the retirement of someone who has spent all their money?

I've heard Jesse Jackson ask for that sort of thing... I guess if you can plan ahead and save something for your own retirement, you should be able to fund everyone else's. We don't tell the story about the ant and the grasshopper enough.

No thanks - why should I save all my life to fund the retirement of someone who has spent all their money?

Myrm was being sarcastic...

Myrm was being sarcastic...

Opps....silly me

Opps....silly me

Meh, so you haven't been around long enough to learn what some of the old-timers political positions are, no biggie...

We do that for the money that is deposited into Roth IRAs. We still don't tax the compounded earnings and in Roth accounts, the withdrawals are tax free.

True, but same thing, if you are going to start taxing the earnings on those what is point of having one? They were devised for the same incentive...to encourage the population to save for their retirement. Increasing savings (good for the economy) and prepare people for the fact that SS was going to come up short.

When you start taxing retirements you will effectively decrease the rate of savings in the economy. It's a quick fix to raise tax dollars but will damage the economy in the big picture.

They should not tax retirements.

My 401(k) will be taxed when I retire, because it is pretax contribution. It bites when you work 30-40 years paying taxes every payday, then they want to tax you on your pension? Be glad you are not in North Carolina.

Our state taxes the state retirement pension, which as a government employee I am forced to participate in. They also wanted to tax the 401(k) quarterly earnings, even though that is a violation of the IRS rules. They also tax your social security earnings in this state. The only thing that does not get taxed in NC is if I pay you cash for doing a job for me. And then, it is supposed to be reported.

Hell, this state even made it a law that I am supposed to pay a sales tax on anything that I buy on line from out of state.

So, in addtion to payroll taxes, social security, medicare, I also have to pay property taxes, vehicle taxes, NC utility sales tax on my phone service, power, gas and water utility, satellite tv, non-food tax on grocery store purchases and food tax (not as high as non-food items such as diapers), gas tax, internet tax, services tax (mechanic work on my vehicle, buying tires, etc), vehicle inspection fee; and I saved the best for last. After I retire with over 30 years service in local government, I will have to pay state taxes on my wonderful 50% retirement pension, which I am forced to contribute into. As a matter of fact, NC will also impose a sales tax on the funeral services of your loved ones.

And filing taxes in NC is wonderful. What is the amount of your adjusted gross income in the federal tax return? What is the total amount of allowable deductions on your federal tax return? Add them together, and that is what I pay tax on.

Actually I live in North Carolina, but not a state employee. I almost was going to be (teacher) but I dodged that bullet *whew*.

SSI is only going to get worse. Medicare and Medicate too. Perhaps we can cut costs with a national health insurence system, but really, who knows?

cut costs by spending more money?:confused:

cut costs by spending more money?:confused:

I think he means cut Medicare and Mediaide in favor of the National Health Insurance System.

What I question though is, how do we know the N.H.I.S. will be funded?

True, but same thing, if you are going to start taxing the earnings on those what is point of having one? They were devised for the same incentive...to encourage the population to save for their retirement. Increasing savings (good for the economy) and prepare people for the fact that SS was going to come up short.

When you start taxing retirements you will effectively decrease the rate of savings in the economy. It's a quick fix to raise tax dollars but will damage the economy in the big picture.
After my last bout with the IRS, I'm going to donate even more money to the FairTax group. There is NOTHING good about the IRS and any perceived flaws in the FairTax are trivial compared to what the IRS does to people.
[/rant]
No savings, investments, or dividends should ever be taxed. That would exclude any money we put away for retirement.

After my last bout with the IRS, I'm going to donate even more money to the FairTax group. There is NOTHING good about the IRS and any perceived flaws in the FairTax are trivial compared to what the IRS does to people.
[/rant]
No savings, investments, or dividends should ever be taxed. That would exclude any money we put away for retirement.

My husband would agree with you completely, he hates them and thinks the FairTax is the best thing since sliced bread.:p

I, on the other hand do not a have a problem with the IRS or our current tax system. In 27 years of representation of tax clients I have never lost an audit with them. (Meaning our stance held.) I have never had anything but fair treatment and complete cooperation from them. :)

My husband would agree with you completely, he hates them and thinks the FairTax is the best thing since sliced bread.:p

I, on the other hand do not a have a problem with the IRS or our current tax system. In 27 years of representation of tax clients I have never lost an audit with them. (Meaning our stance held.) I have never had anything but fair treatment and complete cooperation from them. :)
I'm glad you have had only good experiences with the IRS. I'm sure not everyone can say that. The fact that you or I have to justify our calculations and considerations, at all, is a waste of time and effort that could be better used elsewhere. It's the whole file->check->audit->defend->(win/lose) sequence that is unnecessary. That's my gripe. It's too hard to comply and even when you try hard to, you can still end up in trouble.

I'm glad you have had only good experiences with the IRS. I'm sure not everyone can say that. The fact that you or I have to justify our calculations and considerations, at all, is a waste of time and effort that could be better used elsewhere. It's the whole file->check->audit->defend->(win/lose) sequence that is unnecessary. That's my gripe. It's too hard to comply and even when you try hard to, you can still end up in trouble.

Funny, I've never had any problems...

Funny, I've never had any problems...
You know, if I were just filling out a 1040EZ, I probably wouldn't feel as strongly about it either. The fact that I hire an accountant and still have call-backs from the IRS ought to be an indication that my tax situation isn't trivial. Or I'm just stupid -- that might also be true. But I'm not evasive.

I think he means cut Medicare and Mediaide in favor of the National Health Insurance System.

What I question though is, how do we know the N.H.I.S. will be funded?

Yeah, thats the idea. Eliminating Medicare and Medicaid will cut upwards of 600 Billion from the federal budget. I do not know, however, how much a NHIS would cost.

Politically, if a NHIS system was established, it would become what social security is today, a third rail. Just like social security, enough people will complain about any proposed changes that it would not be politically astute to do anything.

if you werent taxed on the money you put into your retirement while you were working, you should pay income tax on the money as you take it out of the account.

maybe it was the retirement of people who fund their retirement on the sale of their extremely expensive house that is exempt from capital gains?
I think a better way would be to tax them when they buy stuff, and that already happens through sales tax.

The last thing we need is another tax. Don't the bloodsucking kleptocrats steal enough of our money as it is? Fucking leeches.

You know, if I were just filling out a 1040EZ, I probably wouldn't feel as strongly about it either. The fact that I hire an accountant and still have call-backs from the IRS ought to be an indication that my tax situation isn't trivial. Or I'm just stupid -- that might also be true. But I'm not evasive.


Or you may need a new accountant. They are not created equally by a long shot. Much of my practice over the years has been correction work for screw up accountants and lawyers who didn't know their arse from hole in the ground about the tax laws. :p

Yes, that's just what we need...penalizing people for saving and investing their own money for retirement. Makes perfect sense, especially with that gaping Social Security shortfall looming on the horizon; this is exactly why Nancy Pelosi should not be anywhere near a policymaking position.

In fact, I would support eliminating all taxes on retirement funds, perhaps replacing it with higher sales taxes or other measures designed to encourage responsible saving.

The last thing we need is another tax. Don't the bloodsucking kleptocrats steal enough of our money as it is? Fucking leeches.
The biggest tax in existence is a wage, in which the value comes off before you even get it.

this is exactly why Nancy Pelosi should not be anywhere near a policymaking position.

It's a myth. She doesn't actually advocate it.

Or you may need a new accountant. They are not created equally by a long shot. Much of my practice over the years has been correction work for screw up accountants and lawyers who didn't know their arse from hole in the ground about the tax laws. :p
Do you live near Atlanta? Within a few hours drive?

You know, if I were just filling out a 1040EZ, I probably wouldn't feel as strongly about it either. The fact that I hire an accountant and still have call-backs from the IRS ought to be an indication that my tax situation isn't trivial. Or I'm just stupid -- that might also be true. But I'm not evasive.

I don't 'just fill out the 1040EZ'...

Maybe you need a better/different accountant?

It's a myth. She doesn't actually advocate it.

Then the people suggesting she supports such a preposterous idea should be nowhere near policymaking positions...

Then the people suggesting she supports such a preposterous idea should be nowhere near policymaking positions...

Considering that they're probably suggesting it so they can score political brownie points for the sake of their own power, I'd have to agree.