Congress Gives the Wealthy ANOTHER Tax Break
Posted on 02. Feb, 2009 by admin in Feature
Somehow the tax breaks keep going to the affluent. Take this example. In today’s difficult economy many families will be forced to withdraw funds from retirement accounts. Before you fire off an angry email, let me tell you I know that’s not a good idea. But, let’s face reality, these are demanding times and many families may be forced to withdraw from their retirement accounts to bail themselves out of a bad situation just the same as the Congress and Federal government is bailing themselves out of the mess they created.
With that in mind, it would be a good idea for Congress to temporarily waive the 10% penalty on early withdrawals. That would help the average taxpayer. What do they do? Congress waives the mandatory minimum withdrawal for folks over the age of 70 1/2. This just helps the affluent! My gosh, Mr. Congressman and Congresswoman, can’t you get it? Only wealthy retirees don’t need the money every year.
There have been so many tax breaks for the affluent it’s just unbelievable. What are they? Well, for one is the Section 529 Education Savings Account. It generous of Congress to pass this legislation. There is only one problem. Working Americans can’t afford this. Most working Americans cannot fund the full amount of their 401K. Financial analysts recommend funding the full amount on your 401K and a Roth IRA before funding a 529 Education Savings Account. Only doctors, dentists, lawyers, CEO’s and self employed business owners can afford to save more than $20,000 per year in their 401K and Roth IRA and STILL put another $5,000, $10,000 or unlimited amount in a 529 account. Since only the wealthy can afford to use a 529 account, Congress essentially gave the wealthy tax free college educations for their children. The working Americans will to pay for their kids college education with after tax money.
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