I had an interesting thought about money today:
- For retirement, there are 401(K)s available. That's a government program that "allows" you to set aside "your" money, tax free, for retirement. But when the money is withdrawn, you will have to pay gains on the amount. The calculation for that amount for people who are young is going to be hard.
- For health care, you can have money set aside, tax free, that "allows" you to set the money aside for medical purposes. What you don't use in the year, you lose. That's another government program.
- For kid's college education, you can have money put into a college savings account that "allows" you to place money into the account where the gains are tax free as long as the money is used towards college. That's another government program.
- For kid's, you can place money into an education account where the gains are tax free as long as the money is used for grade school educational purposes: private school tuition, tutors, etc; That's another government program.
It would be far easier if they just didn't tax capital gains and interest and let people do what they will with the money they earn.