Originally Posted by Minnewaska
Unfortunately, there is some true to that.
I met with Alan Greenspan once, who said that America became the most prosperous nation in the world because we protected personal property rights better than anywhere else. If you earned it, you kept it and our government would not dream of taking it away. That caused people to invest, take risk, hire people and bring capital and innovation from other countries to the US.
While one can argue for an income tax, there comes a point when it is just taking from anothers effort. However, spend it or they will take it is clear in estate tax and is highly feared in retirement savings. Congressional fangs are out when they see the amount of deferred taxes in our cummulative 401k savings and the drool is spreading. When section 401k of the IRS code was first written in the 1970s, they had no intention of it becoming what it is today. Almost everyone had a regular pension back then, from companies that paid taxes. They were simply trying to supplement the idea that Social Security was not going to keep up. Yes, its been kicked down the road this far.
Off soap box.
Yes you are totally right.
With a large percentage of US citizens (maybe we should also include illegal imigrants) with no retirement savings, no pension, no 401k, and with Social Security going insolvent, where can we get the money to support these people in their retirement (or when for health reasons they are no longer able to work)?
Answer: The 401 k accounts for those that have saved and not bought the luxury house, the new car every 3 years, the latest style of clothes, the latest computer and I phone, not eaten out all the time, nor gone on pricey vacations.