I’ve stopped penny pinching about 2 years ago, when this hit me…That’s why, when I like something now, and I can afford it, and it’s reasonably priced (not totally overboard), I just get it… Because if I don’t, uncle sam will tax me for holding on to my money and fork it over to defense spending and entitlement programs that I don’t benefit from. Government can’t exactly tax you anymore up the ying yang when you don’t have excess money to tax…Spend now voluntarily…or let someone else spend for you later…[/quote]
Spending/consuming more doesn’t lower your taxes.[/quote]
No, I’m just not leaving any more money than needed on the table for it to be taxed in the future.
For instance… Folks that think that things like 401k income deferrals I think will be in for a rude awakening when taxes are due when a Generation Xer retires. I’m pretty sure the taxes paid then will be more than paid now, both in terms of percentages and actual amount paid.
Nor do I think Roth 401k/IRAs are going to be non-taxed in the the future too…
