Meg’s post from the other day mentioned the possibility of a national sales tax (consumption tax) and the negative impact it would have on the Roth IRA and 401(k) since the contributions to those plans were already taxed and would be taxed again when spent during retirement. This leads me to today’s question of the day:
Personally, I don’t ever see us going this route (and I’m not necessarily saying that a national sales tax is a bad idea). I think there are just too many hurdles to overcome and I don’t see our government embracing something so different. In other words, I wouldn’t let the thought of a national sales tax keep me from contributing to a Roth IRA or 401(k).
Now, what are your thoughts?