How can we stop government from breaking it's promises not to tax things like Roth IRAs?

Question

CAN YOU TRUST THE GOVERNMENT NOT TO CHANGE THE ROTH RULES DOWN THE ROAD?

by Andrew Schwartz, CPA

Since graduating from college in '87, I have been a practicing tax accountant. On more than one occassion, I have seen the government enact legislation that reversed some of their previous tax breaks. How confident are you that the government won't find some way to tax your Roth accounts down the road?

The first reversal I observed was back in '97 when the government increased the percentage of social security benefits that is taxable from 50% to 85%. Don't forget that you can't deduct the social security taxes you pay into the system each year, which means you'll be taxed twice on any "benefits" you receive. When social security was first introduced, none of the benefit was to be taxable.

See other two reversals:

http://www.findagoodcpa.com/2006news/news1006.php

IRS might tell you donations NOT in good condition:

http://www.findagoodcpa.com/2006news/news0906.php

Answer 1

Elect only Conservative candidates.

Answer 2

You're right to bring it up. If you let the big government do whatever it wants, you will end up losing more than the money in your Roth IRA. Government has been known to take people's property either through executive orders, regulations, amendments to the contitution, taxes, and last but not least inflation by expansion of money and credit.

I commend you for being vigilant. If you don't like the way taxation is going, you should check out this Congressman Ron Paul (R-TX). He's against taxes and big government and against wasteful spending. http://www.ronpaul.org

Answer 3

i had not known of a none taxable ira when it's withdrawn. You have to pay taxes. This is what keeps the country ticking. And the rate of taxes could be fluxuated by the prosperity of the nation and individual states. Unemployment; war; greater tax returns of the highest brackets rather than the lowest. Of course the first class has to pay the highest tax, percentage wise. These are hard times of today, hoping tomorrow is brighter. But I don't understand how these can be completely non taxable. even government bonds are taxed. The more mature the ira, or bonds are, can see allowing a lesser taxaition, as these would be primarily for retirement. And the maturity of the invested security, should or could be rewarded with a lesser tax.
I speak however of a more perfect form of government. with the world economy as it is today, i think paying taxes is better than not having a job, and paying no taxes. Unemployment, unto right off the scale, yet still no job. the uncounted unemployed. But you have to pay your taxes. The taxation needs be more responsibly distributed, according to wealth, not rewarding the weathy with more so-called wealth. The top of the ladder has to support the bottom of the ladder rungs.
But I don't know about non-taxable ira's or stocks, as i'm not conversant with the economy nasdaq &C.&C&C gotta pay taxes and die, that;s for sure!

Answer 4

You can not count on the government doing anything. The only thing you can count on is they will find a new way to tax you more. Many low income people don't make enough money to contribute to a Roth or a 401k. If they do they are lucky. 2 things you can count on: Death and taxes.

Answer 5

Mostly just stopping electing the same stooges every time. Politicians (and the media that is supposed to inform us) have found that they can appeal to many voters on just one issue and of course with some help from friendly journalists they can be on both sides of any one issue. We need to hold our national reps to a record not just based on what they say but also what the Congress achieves. Anyone who believes that one party is better than the other is just a chump for image makers and slogans. If your Congressmen comes home and says well I was on your side on this issue but the rest did not go along with it, then consider getting a rep who brings home good news instead of an alibis. We have officials who are elected time after time on tax reduction platforms but who vote for new taxes and fees and yet get elected time after time. We need to be better informed but what settles for news is too often press releases from interest groups and officials.

Answer 6

the only way to make anything actually permanent is to keep electing the people who made the promise to office. any law can be changed by Congress no matter how "permanent" they may claim the law is

Answer 7

stop paying taxes period...we have to join together and do it..as well as find out the truth about the real secrets and what they're hiding forreal!

Answer 8

vote out tax and spend liberals -

Answer 9

fire them,vote them out,we can't shoot them it is against the law.