Good advice on the 401(k), a friend of mine is working at an H&R Block tax prep station for some extra money and has been telling me of the vast numbers of people that come in and are surprised to find out they owe federal tax on top of the penalty...
The idea of a one rate tax appeals to me only if it is applied as a consumption tax. that way you really only get taxed on what you buy. not on what you save, invest, etc. Also cuts a hell of a lot of loopholes. Though a liberal socially, I do not think that those with more should pay more (have a more fair share of taxes?!?), nor do I think those with more should be able to take advantage of built-in loopholes either. A consumption tax on fuel, clothing, etc would pretty much take care of that. With no direct tax on income, earned or un-earned you'd encourage people to save rather than send every penny they've got to eek out a living... On 3/17/06, Robert Everland III <[EMAIL PROTECTED]> wrote: > I don't know why you didn't consult an accountant before you cashed out your > 401K. The 401K I had told me many times that I can't cash out without severe > penalties. When I did finally cash out my 401K to buy my house I only took > out the first 10K which is penalty free, but NOT tax free. So I had my bank > withhold the tax I would owe. No fuss no muss. I'm not even gonna comment on > the stock thing because I have never had to deal with that. > > I don't know how much of a proponent of a one tax I would be. Everyone is > different and I don't think having one tax law is going to solve anything, I > think it would just make another set of people pissed off with how the system > works. > -- will "If my life weren't funny, it would just be true; and that would just be unacceptable." - Carrie Fisher ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Message: http://www.houseoffusion.com/lists.cfm/link=i:5:200487 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
