February 05, 2005

Don't tax me, tax the guy under the tree

Here's a question for Mr. Bush: if your (asinine) plan for private accounts went through, would the payouts from those accounts be taxable income?

...while the retirement account might be “money that the government can never take away,” the government usually “takes away” some of citizens' income through taxation. Would retirees' withdrawals from their retirement account be treated as taxable income, just as withdrawals from 401k plans and IRAs (with the exception of Roth IRAs) are taxable income? For today's retirees whose income exceeds a certain threshold ($25,000 for an individual, $32,000 for a married couple filing a joint return), their Social Security benefits are subject to income tax — so the principle of taxing benefits is already established.

Whaddya bet the answer's yes?

Posted by Linkmeister at February 5, 2005 07:49 AM

Well, I'm glad that the citizens get a chance to really study this situation.
The NYTs questioned whether or not someone born after 1949 would be able to draw on SS if they had a disablity-with the new proposed SS.
Also, if 4% is put into a Government annunity, that annunity would not be eligible for payment to a survivor.
Alot has to be worked out yet...

Posted by: Toxiclabrat at February 5, 2005 04:50 PM

If the Democrats stand firm, and so far they are, it won't go through.

Posted by: Linkmeister at February 5, 2005 07:13 PM