Politically_Incorrect12
Senior Member
With a little faith, we can move a mountain; with a little help, we can change the world.
Joined: Dec 20, 2010 20:42:13 GMT -5
Posts: 3,763
|
Post by Politically_Incorrect12 on Feb 17, 2011 14:47:46 GMT -5
What are you thoughts on tax credits given to promote savings, such as states giving tax credits to up to a certain amount based on how much you put in a 529 to save for you child's college? Or the government offering a savers tax credit up to a certain amount based on how much you put away in a retirement plan? I'm sure there are other examples that can be come up with, but just thought I'd see how others felt about these types of tax credits.
|
|
jkapp
Junior Associate
Joined: Dec 23, 2010 12:05:08 GMT -5
Posts: 5,416
|
Post by jkapp on Feb 17, 2011 15:34:13 GMT -5
>>Or the government offering a savers tax credit up to a certain amount based on how much you put away in a retirement plan? <<
401k contributions are already tax exempt (up toa certain percentage of salary)...and IRA contributions already have credits for them (up to a certain dollar amount).
|
|
|
|
Post by Savoir Faire-Demogague in NJ on Feb 17, 2011 15:38:50 GMT -5
Some states do provide tax write offs/credits for making contributions to the state sponsored 529.
I do know that the NY State plan allows this.
|
|
|
|
Post by Savoir Faire-Demogague in NJ on Feb 17, 2011 15:39:28 GMT -5
401k contributions are already tax exempt (up toa certain percentage of salary)...and IRA contributions already have credits for them (up to a certain dollar amount).
The items you note are tax deferred.
|
|
rockon
Senior Member
Joined: Dec 22, 2010 8:49:55 GMT -5
Posts: 2,384
|
Post by rockon on Feb 17, 2011 15:49:55 GMT -5
Tax credits are very simply a method used by our government to manipulate peoples actions or behaviors. While they may have arguably good intentions they generally end up adding to the complex tax code and end up being abused for unintended purposes and people. There may be times when a temporary tax credit makes sense but in most situations the free market is much more effective in determining what makes sense and what doesn't. I would much prefer a fair and equal tax code that allows people to make their own decisions versus a complex code designed to steer you where they want you. But I'm one of those independent SOB'S
|
|
|
|
Post by privateinvestor on Feb 17, 2011 16:09:01 GMT -5
What are you thoughts on tax credits given to promote savings, such as states giving tax credits to up to a certain amount based on how much you put in a 529 to save for you child's college? Or the government offering a savers tax credit up to a certain amount based on how much you put away in a retirement plan? I'm sure there are other examples that can be come up with, but just thought I'd see how others felt about these types of tax credits. I am all for tax credits but they are on the chopping block this year in order to boost federal and state revenues.. Tax Simplification is a better way to go..IMHO.. but instead our government is adding 5000 more IRS agents but they promise to be the "warm and fuzzy" type..   |
|
ugonow
Senior Member
Joined: Dec 21, 2010 10:15:55 GMT -5
Posts: 3,397 
|
Post by ugonow on Feb 17, 2011 18:05:06 GMT -5
True... but in this case tax credits for saving are not in the governments best interest. As sad as it may be,our economy is at it's best when people are spending,not saving.
|
|
ugonow
Senior Member
Joined: Dec 21, 2010 10:15:55 GMT -5
Posts: 3,397
|
Post by ugonow on Feb 17, 2011 18:43:40 GMT -5
The "tax" on savings is the paultry interest rates you recieve. You are forced to take on some risk exposure for any sort of a return.
|
|
ugonow
Senior Member
Joined: Dec 21, 2010 10:15:55 GMT -5
Posts: 3,397
|
Post by ugonow on Feb 17, 2011 19:07:28 GMT -5
No worse than last q of 08.
|
|
