I call BS that taxes keep people from saving - there are various tax benefits to saving and planning ahead as well.
Death but no taxes
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You may call BS but there seems to be some discussion about the issue in academic circles.
Supply Side Economics
While this article agrees with you apparently there is at least room for discussion.
My point was that the PERCEPTION of tax unfairness is a contributor to the lack of savings.
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Well, I definitely agree that a false perception would account for a lack of savings for many. They are probably also the ones who think they don't need to save for their retirement and plan to live off Social Security (which should only be 25-35% even according to the SS Admin.) and think they come out ahead by "financing" things and accruing debt.
No financial adviser has ever told me not to save because it would hurt me because of taxes. They do have a wide variety of suggestions as to how to take proper advantage of the many tax benefits of knowledgeably investing and saving.
No financial adviser has ever told me not to save because it would hurt me because of taxes. They do have a wide variety of suggestions as to how to take proper advantage of the many tax benefits of knowledgeably investing and saving.
If politicians really wanted people to save, why would they put limits on 401K contributions? Why do they tax long term capital gains?
Most Americans would be paying more with a flat tax.
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I totally agree. Now we can look at what the effect is of individuals making investment choices to avoid paying taxes instead of the highest rate of return.
Anyone under age 60 who is counting on Social Security is an idiot IMHO. And personally I abhor debt.
Almost 50% of Americans don't pay income tax. So a 1% rate would represent a tax increase. Rich people have advisors to shelter their income and so their actual rate is far lower than the stated bracket. Guess who that leaves to take it up the wazzooo? You guessed it, the working poor aka the middle class. We may not understand fractions but we understand that, hence the bitterness towards the IRS.
In the current system if your income isn't high-6 to low-7 figures, then "No Loopholes for you!" It has traditionally taken a good bit of money to participate in the various schemes concocted to exploit the system.
If you're earning a few hundred grand or less, you are screwed.
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