House Republicans, having cut taxes on business income and individual earnings, are now looking to cut them on savings, through new universal savings accounts.
The House GOP attached the accounts, allowing individuals to save up to $2,500 annually on a tax-privileged basis, to what they are calling “Tax Reform 2.0" — a permanent extension of the individual-side tax cuts included in the December tax law.
House Republicans advanced the legislation through the Ways and Means Committee last week. The legislative package isn’t expected to reach President Trump’s desk this year, but the inclusion of the savings accounts sets up a future GOP Congress to enact them and transform the way Americans save.
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Abour time saving money should not cost anything
ReplyDeleteGive us poor folks a real Tax cut, no income taxes on the first $24,000.00 earned!
ReplyDeleteThe banks will just take the difference
ReplyDeleteThere are a couple of issues with this -
ReplyDelete"The problem, in Edwards’ view, is that individuals are taxed for saving, but not for consuming. Once an earner has paid the income tax, he has two choices with what to do with his money: One is to spend it on current consumption, for which he’d pay no tax. The other is to save the money and then take it out in the future to spend on consumption, at which point he would have to pay taxes on the saving in the form of interest, dividends or capital gains taxes."
First - when you spend money you are taxed. Sales tax.
Second - You do not pay tax on the savings since it was already taxed. You do pay tax on the pennies you get in interest and I have never paid capital gains tax on money I put in savings that came thru a payroll check.
Third - why would you pay ANY penalty for using your own money that was already taxed?
Fourth - the article states that savings is "after tax"
Since none of this makes sense I presume they are up to something.