RE: Rich Scumbag Wants To Cut Taxes For Rich Scumbags
April 26, 2017 at 3:13 pm
(This post was last modified: April 26, 2017 at 3:25 pm by Jackalope.)
(April 26, 2017 at 3:04 pm)popeyespappy Wrote: In other news one proposal that's been floated to pay for these cuts is the elimination of deferred taxes on 401K contributions.
Awesome, so let's finance pay cuts for those who don't need it with a tax hike on those that do.
Fucking brilliant. Watch the savings rate of wage earners to drop precipitously if this happens.
This is going to be about as popular as a turd in a swimming pool.
Back-of-the-envelope math informs me that eliminating the deferred taxes - which would seem to be funding with post-tax dollars and making withdrawals tax free, rather than funding with pre-tax dollars and taxing on withdrawal (presumably at a lower rate) - informs me that this would result in a $4500 annual tax hike on individuals contributing the maximum with a marginal tax rate of 25%. The effect is doubled on two-earner households who both contribute the maximum.
Oh, also - this change will likely push a number of middle-class households into higher tax brackets, for the benefit of corporations, to the detriment of the middle class.
Fuck you, Trump.
