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In reply to the discussion: NY Times Op-Ed: Tax Wealth, Not Income [View all]JustAnotherGen
(31,780 posts)5. Is the idea for the wealth to never grow beyond a certain amount?
What if the majority of the wealth is in tax deferred accounts? Such as IRA's, Annuities, and 401K's? In some cases, you might have to cash something in early, thus incurring additional taxes. Or - would there be a deduction for those who say - cash in a 25K IRA to pay the additional taxes? I.E. - we won't tax you the early withdrawal penalty since it was considered 'wealth' and not income?
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Yet this can be a problem esp. for elderly who own their house or farm yet have
SharonAnn
Nov 2012
#15
and we can't kill them either, obviously. That's why it's such a thorny problem.
librechik
Nov 2012
#34
aren't bank transfers over a certain amount, maybe $1K, already flagged? by homeland security? eom
amborin
Nov 2012
#37
AFAIK, that's already the case. Bank accounts have required your 'SS# or Tax ID#' for years.
freshwest
Nov 2012
#35
Most people I know have no saved wealth... the entire paycheck goes to bills...
Comrade_McKenzie
Nov 2012
#21
My 88-yr-old mother, as well. Lives really frugally, so she can have some U.S. bonds.
WinkyDink
Nov 2012
#28
The virtual elimination of the inheritance tax, something the Founders approved of, destroys that.
freshwest
Nov 2012
#36
Well, there are a whole slew of retireees like me---from public education---who think this is a bad
WinkyDink
Nov 2012
#27
I do find it fascinating that now that the top marginal rate is likely to go back to 39%
Warren DeMontague
Nov 2012
#32