Skip O'Neill – Liberty for All

Ron Paul for A New Direction

Taxes and David Wu

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I have an idea for Obama to increase tax receipts in 2010.  He should lower the minimum age that a person can begin to withdraw money from their 401K or IRA accounts.  The current age is 59.5 and if he lowered that age to say 52 or 55 he would increase tax receipts to the U.S. Treasury.  Here is my thought process.  Typically people begin to withdraw from their IRA when they retire and the withdrawn funds are treated as “income”.  When people retire they typically are not earning the kind of money they earned during their peak earning years (age 50-55), so withdrawing from the IRA “post” retirement, the tax impact is small.  By allowing people to withdraw at an earlier age, those funds would be subject to a higher tax rate because person is typically earning more income.

Of couse, Obama will not go for this because the smart people would totally cash in their IRA, pay the taxes and buy gold.  No, he wants the money tied up in the banking system so he can regulate it.  So much for liberty and freedom Mr. Wu.

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