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Feb 18, 2004 If I understand correctly, President Bush is proposing a “lifetime savings plan” (LSA), that would allow couples to put away up to $10,000 a year into a savings account. The $10,000 would be “after tax” money. In other words, it is money the couple was not robbed of through excessive taxation. All money placed in LSAs would not be taxed again, nor would any “gains generated by [any] investments” made with the money. The couple could also use the money as needed (since it is their money anyway) “without any [penalties or] restrictions”. The money and all gains belong to the couple that owns the LSA. There is also a proposed “retirement savings account” (RSA), which would basically be the same as an LSA as far as putting money into it and keeping IRS hands off of it. The RSA is considered a good alternative to the various IRAs and SEPs and Keogh Plans that have multiple restrictions on usage without penalty. The only RSA restriction is that the money remains in the account until retirement age. It is not a usage account as the LSA can be. Wall Street says it likes these plans because they will be capable of generating large investments. Large investments mean large investment fees can also be generated. It is understood that all the money involved has already been taxed once and will not suffer the double taxation inbred into just about every other type of account including Social Security accounts thanks to Mr. Al Gore. These plans must be good because of the opposition: 1) Insurance companies like Keating oppose the accounts because they will cut into the “401k business”, the pet plans of most insurance companies. 2) Washington budget “experts” hate the plans because the government stands to lose an additional 50 billion in “double” taxation revenue annually; not being able to touch these already taxed dollars again and again. 3) Demic-rats are using the age-old argument that LSAs and RSAs only benefit the “wealthiest Americans”. I don’t know how that is possible with dollars that have already been taxed. We all know that the wealthiest 50 percent of Americans pay 96% of all taxes already. This is just the demic-rat way of saying the wealthy are still not taxed enough. Anyway, insurance companies, demic-rats and liberal budget analysts are opposing these accounts so they must be good for Americans. Any plan that takes money away from Washington tax-a- holics and puts it back into the hands of the people is okay with me. Keating fears the “consumption” factor of the LSAs. What that means is that Keating fears that couples that opt for the LSA will actually use the money for them rather than leave it in the account so firms like Keating can have more investment capital for themselves. HEY! If it is my money, why should I not be allowed to invest it for myself? What business is it of anyone’s, after they have already taken out the federal, state, county, municipal and city taxes, what I do with the leftovers? I remember back in 1999 when I was sent to my last station in Columbus, Ohio. My family remained in New Jersey while I completed my active duty service. I took a night job with a local supermarket chain working in the produce section. (Yes, I can still select a ripe and juicy watermelon or cantaloupe every time.) Anyway, after a 90-day evaluation and trial period, new employees were to receive a $100 “bonus” check for both survival and incentive. After the federal taxes, state taxes, FICA, and city of Columbus taxes, not to mention the Union’s “cut”, I was able to bank $46 of the $100 “bonus”. That was 54 dollars I would never have been able to put into an LSA. I want to keep my money! Is that so wrong? I don’t want politicians taking my money and then bragging about all the great things they are doing for me with my money. I know what I need. I don’t need an office building named after a West Virginian Senator; I live in New Jersey! I don’t need an expansion of Cleveland’s Rock and Roll Hall of Fame; I live in New Jersey! I already pay the highest nationwide rate in property taxes and fees and I get nothing back from that. My municipality is putting in new sewer lines. Are they going to hook my home into the system for me? Nope! I am being told I must pay $3000 to have that done. In the 25 years I have lived in my home I have paid an annual average property tax rate of $2200 to keep the taxman from selling my home to someone else. It seems that $55,000 in taxes to the municipality doesn’t mean anything? The original cost of my home was only $39,900! Now, all of that is really just gripe. It is the cost of trying to live in America. It is still better than any other place in the world. One of these days I will be retired-retired and I will be out fishing, drinking coffee from a thermos and eating bologna sandwiches without a care in the world, maybe. I can probably do all that if I can keep enough of my money, after taxes of course, to buy a fishing rig. An LSA might help me do that. ------------ About the Author: Independent, Conservative, Christian. Married 29 years with 5 children raised and one grandson being raised. 30 year Army Veteran and published poet with www.poetry.com since Y2K. Email Michael John McCrae: michael.mccrae@us.army.mil Comment on this column in the forum. Tell a friend about this site! ------------ |
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