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Originally Posted by Abnshrek
401K's and IRA's either its pretax $$ or you get a tax credit ahead of time so thus it can start making money if put where the best value for your $$ is.
Ok I liked Bush alot, but he was responsibile for the derivitives bs w/ housing coming about after enron crashed. They definately loosened the grip. Me I can say I liked him(Bush) personally, Economy wise he sucked.
The point is why your paying less money on Investments is.. You Risked it (not everyone who invests makes a profit doing it), you should reep your rewards (especially after you earned and paid taxes on what you did invest.). Your helping to create jobs. The Govt can't do that to good.. Point #2 Harvey & his 9 buddies are all working hard to make a buck on their coop(Inc.). Why should they put themselves on the payroll when they can make more by paying themselves dividends :^) @ half the tax rate. :^)
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I'm not against IRA or 401Ks, I think it is a good way to encourage savings and investment--I am just pointing out that the working person that puts his money in an IRA is not getting the same tax benefit as the really rich that are paying 14% on income from dividends.
Your second point shows how Harvey was trying to mislead us--he is not getting double taxation--if his corp. paid him a salary equal to what his farm earned--he would pay the same tax rate as us working people--the company would decuct the cost of salaries--not pay taxes on that as profit. The real benefit for incorporation is in the tax deductions for investments and depreciation--I am not against that.
Risking your money does not deserve any special benefit over working for it. I still do not think it is fair that the rich pay taxes at half the rate that I do.