The Roth Assumption May 15, 2008
Posted by Jeff Nabers in : Money, Self Directed IRA Solo 401k , add a commentWe all have that friend who is financially irresponsible. You know, they have a new cell phone every time one comes out. They lease a brand new car every 2 years. Their credit cards are maxed out. And they don’t really have a game plan on how to pay for the stuff they have. The best I can tell is that our government is kind of like that. If you look at the timeline, all major tax changes result in increased taxation. Let’s just look at what happened with Social Security:
- In 1935, the Social Security Act was passed, and the Social Security benefits systems was created. Benefits were not to be taxed.
- In 1937, FICA began payroll taxes of 2% in order to fund the payout of SS benefits.
- In 1950, payroll taxes were raised to 3% in order to fund the payout of SS benefits.
- In 1956, payroll taxes were raised to 4% in order to fund the payout of SS benefits.
- In 1972, payroll taxes were raised to 9.2% in order to fund the payout of SS benefits.
- In 1977, payroll taxes were raised to 9.9% in order to fund the payout of SS benefits.
- In 1983, payroll taxes were raised to 10.8% in order to fund the payout of SS benefits.
- Starting in 1984, up to 50% of an individual’s or couple’s Social Security benefits were (more…)
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