Retirees living on SSA benefits are always in a squeeze between inflation, unexpected expenses of healthcare, repairs, autos, etc. money saved over the years in retirement 401K and all IRAs should be able to be distributed tax free. It’s our money we put away for our senior years. The government shouldn’t be looking to take any of it away.
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Absolutely agree with this one! Why should we be taxed on retirement distributions to supplement fixed social security incomes. We’ve worked hard to save for the “golden years” of retirement which currently are not so golden due to inflation and the exorbitant cost for health care.
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If we dump the current income tax racket, then we dont have to worry about what you mentioned. How about that we focus on replacing income taxes with Trump tariffs and we dont need to sweat what you just posted? Wouldn’t that be better?
Of course that would be better. But dropping the income tax would be a heavy lift considering all the CPAs and companies like Jackson-Hewett who would be suddenly out of business should there be no income tax. I agree that seeing a tariff based economy that didn’t require us to pay income taxes would be wonderful. I’m just not certain it would happen. If it doesn’t, I feel removing all taxes from IRA and 401Ks would be very helpful to seniors.
Also, consider the action of individual states. If Trump were to abolish the Federal income tax, would the states follow suit? My guess is they wouldn’t. They would see it as an opportunity to raise their state income tax and get their cut of the sudden windfall to citizens. Those blue states with the most corrupt governments would be more than happy to dig deeper into the pockets of their citizens claiming they’re still paying less overall in taxes so stop complaining.
In this case, I think it could be better described as a “heavy drop” by sending tax-centered CPAs back to school to learn how to do “tariff-accounting” vs. “tax-accounting”. And speaking of Jackson-Hewett, I have spent a fair share of my time in those pop-up offices at the beginning of the year. They already made tons of money off me, filing paperwork in order for me to send off even more tons of money. I think they earned enough, since the “heavy lift” was on the taxpayer every year to provide them with such funds.
As for state actions based on abolishment of national taxes, we can create hypotheticals and what-ifs all day long about their future intentions; however, all of that falls on the wayside if controls are put into place stipulating that they CANNOT do said hypotheticals, or they would run the risk of not getting any state funding from national tariffs. It is quite simple to keep the states from becoming tyrants, when you control the money.
So on the bigger scheme of things, I still believe that tariffs win out over the current income tax extortion racket.
I think you’d find stipulating the states do as told would be challenged immediately and tied up in court for years. States are given many freedoms under our Constitution. Any federal attempt to limit states would be immediately challenged. We can’t get states to run clean elections for federal office after years of trying. What does that tell you? One thing certain, anywhere politicians are involved, hold on to your wallet.
Tariffs are great in concept but can be a double edged sword. If you’re trying to protect domestic industry against countries that dump products here, it works but limits competition in the marketplace. Also, any cost that we impose by tariffs on imported goods will end up costing users more in the end. So, we end up paying for it either way. I’m for anything that keeps money out of the clutches of politicians.
I’ve been thinking about the pros/cons of a national sales tax in lieu of a federal income tax. Something like 1% of everything purchased. The trouble would be politicians would constantly want to raise it every year. But I think it would be a fairer system in that everyone pays the same relative to what you purchase, not on what your earn or save.
I think it is the entire “taxation of income” system that is burdensome and unconstitutional, and should be abolished. Most Americans simply want to end the yearly wealth extraction and tax forms. Replacing the current income tax revenue with tariff revenue on newly imported goods drastically reduces government intrusion, frustration, and annual confiscation of wealth, which WE must administer through tax filings.
Unlike the current income tax system, tariffs would end yearly tax filings, create incentives to mfg companies to return to American shores and thereby increase overall standard of livings, and most importantly, give those Americans control back over their lives with regards to their incomes and the mandate to report on it every year.
Not filing yearly income taxes or worrying about sorting, deducting, itemizing, form-filling, mailing, receipt-counting, tax prep costs and intrusive filing appointments, is what most of us would prefer, and instead, deal with the slightly higher imported product costs associated with tariffs. We CAN control our wealth with tariffs in place, simply by purchasing used, second-hand, and thrift store items instead of new items. And we CANNOT control our wealth with the current income tax structure in place, since our wealth is taken from us even before it hits our pockets.
There are some who are stuck inside of a box, thinking that the current income tax system has to remain in place, and the only thing that WE THE PEOPLE can do is juggle tax brackets around and create more stipulations and conditions to the existing tax polices in place. Some consider moving the upper tax brackets around, thinking that they might be able to get more govt services for themselves (being in a lower tax bracket) if they suggest it.
Let’s dump the current income tax system and the IRS – it is played out. Shuffling the chairs on the titanic at this stage is not going to make the ride anymore attractive. Tariffs are the way to go for most average Americans who wish to keep more money in their pockets and are OK with shopping for used items.
President Trump is offering to take the U.S. back to the days of tariffs, before there was income tax – I completely back this idea, since we have control over what new items that we buy, and thus have control over how much money stays in our pockets.
- Income tax (of any sort ) = YOU HAVE NO CONTROL (aside from hiding earnings in a black market economy )
- Tariffs = YOU HAVE TOTAL CONTROL (buy stuff used, second-hand, and cash only )
All tax on income should be abolished and replaced with tariffs. Unlike income taxes, tariffs create an incentive for mfg companies to return to American shores once more in order to avoid said tariffs. Doing so will create more jobs and local industry, further reducing overall business costs and increasing per capita standard of living. My two cents. Thx.
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It’s a policy I agree with but it also requires a few other things. If we go to this policy what about other forms of taxation, do we pay them?
State income tax
Real estate tax?
State sales or use tax?
Taxes applied to telecommunications, internet, gasoline, natural gas, heating oil, electricity, etc?
If these are not included do you think they will increase when Federal income tax is abolished?
I understand your points, yet I don’t understand your concern over them. I can assure you that the state government will not be knocking on your door to find solutions to their revenue streams, so I am not really sure about your deep concerns over making sure all of the mentioned taxes are completely resolved within the context of this post. You will not be penalized over not having those answers – nor will I.
Sometimes we must take a step in a positive direction and worry about the “what-ifs” and “might-happens” once we get there. By your own behavior, we shouldn’t take one additional step in any direction until everything is already planned ahead of time. This is a form of defeatism, normally taken by apologists.
I have suggestions on how to pay for all of them, however, that is not my intention in this post. We shouldn’t waste time and forum text space on countless hypotheticals with each of my available suggestions. The main point of my posting is to show the rest of us here in America, that we can actually use another form of government revenue that is NOT dependent on income taxes and yearly nghtmare filings and costs – that being tariff revenue (which would be nearly transparent). I think enough information is posted that will allow them to see the benefits of replacing the current costly and troublesome national income tax system with a low-impact tariff system. And, with the added bonus, that the IRS can start worrying about imports and tariffs instead of digging through our bank accounts.
I posted my arguments with the American People’s concerns in mind. You countered those arguments with Government concerns of revenue streams in mind. I think that readers can tell which arguments might better serve them instead of the state.
The money that was paid in to the retirement, was taxed once, when we earned it, then again the government taxes us again, if there has to be a tax it should only be once, as it was intended to be but it would be better just not have any taxes at all, in my opinion.
Please consider this solution;
Sure, if we can get it. All tax is a burdon on We The People. If we could get the size and scope of the federal government cut by 75% tariffs should be able to pay for everything. I also like the idea of using bitcoin to pay off the federal debt. Then a balanced budget amendment, term limits, gold and silver backed currency,
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It is entirely up to, We the People have a Blessed Day, Fred Walker
So we shouldn’t move forward because of Jackson Hewitt?? They have a high school graduate run a program that figures everything. Your thinking is problematic.
I never said we shouldn’t move ahead because of Jackson Hewett. I simply pointed out there are tens of thousands of entrenched interests that would not think, hey this is great, just take away my livelihood. If you feel people are going to fall in line when all this disruption happens without serious pushback then you’re delusional. My guess is Trump will start with DOGE to see home much can be cut from federal spending and start paring away in bits. Same with tariffs to see what he can get away with. Perhaps in his fourth year he can do away with the IRS.
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We paid taxes our entire working careers some of us started as early as 14 years of age some earlier; then we are taxed on every single dollar we spend. Enough is Enough, we deserve to retire without the burden of worrying about paying more taxes.
Isn’t this just a Roth IRA/401K? Unless you’re saying you should not pay taxes when you save it or when you take it out? In that case I think they would have to lower limits to make up for the lack of tax income
Not to worry, Christina…Trump has ya covered! 