Should the gov't make savings a tax shelter?
2007-02-26 02:42:23 · 8 answers · asked by Anonymous in Politics & Government ➔ Other - Politics & Government
Personal savings in banks is at an all times low. But when 401Ks, education funds, and other retirement plans are included personal savings is at its highest point since before WW2. Plus people are investing in their primary residence as an investment and are buying second homes and investing in real estate. The idea that personal savings is decreasing is a canard used by a media with a set agenda.
A savings account is the worst place to put all of your money because while it is safe it grows slower than inflation so you are losing money.
2007-02-26 02:52:04 · answer #1 · answered by Jester 3 · 0⤊ 0⤋
The reason is credit. Folks owe so much on credit, it has become very difficult for them to save. For the gov't to repeal the tax on saving accounts would help the consumer, but it won't be enough of an incentive for them to start saving more. That's impossible since they owe so much money. What you say most likely will happen in the not so distant future because it sounds like a great public relations idea, and the gov't will get its tax money through another avenue.
2007-02-26 02:53:22 · answer #2 · answered by mac 7 · 0⤊ 0⤋
From my understanding savings isn't at an all time low in this country. The math the government uses to come up with the number is flawed. It only takes into account how much is saved compared to how much is spent. Also it doesn't look at 401K's and other types of retirement saving accounts. However, I believe in giving the people more of their money, so I would love to see a tax shelter.
2007-02-26 02:50:48 · answer #3 · answered by Robert and Tanya 2 · 0⤊ 0⤋
No, not really. Just think about it, the savings interest is very low so you won't be taxed on as much. So the government is actually losing out on this more than you are. We have several thousands in our savings account, and I get taxed like 50 dollars from interest. It's not even enough to make a big deal and it honestly doesn't change my taxes enough to notice.
2007-02-26 02:47:27 · answer #4 · answered by Serena 5 · 0⤊ 0⤋
I think that would be a great idea. Anytime we can shelter more money from the druken sailors we call a government is a good day. Both sides of the aisle are spending our money on stupid things and overpaying for the simplest things. I would gladly pay more in taxes if I thought Government could actually solve problems.
2007-02-26 02:54:22 · answer #5 · answered by Devdude 5 · 0⤊ 0⤋
Stopping the taxing on savings accounts could effect the way the Federal government insures these accounts(FICA). The banks and insurance companies would welcome this with open arms - it will give them the opportunities to raise bank fee's and create a new you pay monthly insurance for your account savings.
2007-02-26 03:03:12 · answer #6 · answered by Anonymous · 2⤊ 0⤋
yes, I have thought that for years. A cap could be put on it, say, $2000 worth of interest would be tax exempt. It would help spur savings, maybe...
2007-02-26 02:51:53 · answer #7 · answered by iwasnotanazipolka 7 · 0⤊ 0⤋
yes i think so i have 11000 in my acc and only got 55 dollers intrest for the year and the government took 20% for taxs im thinking of pulling it all out that way they dont know what i have cant tax what you dont have hint hint
2007-02-26 02:53:16 · answer #8 · answered by STEVEN L 3 · 0⤊ 0⤋