[quote=carlsbadworker]They don’t have to change any rules, they just create new taxes that make Roth tax advantage irrelevent (e.g. tied to consumption rather than income). Income tax is not the only way to tax you. If history is any guide, there’re many creative ways to introduce new taxes. In fact, Obama just said he is considering VAT: http://news.yahoo.com/s/ap/20100421/ap_on_bi_ge/us_obama_tax%5B/quote%5D
Ah, OK, you’re saying VAT in replacement of income tax. If they do go that route, then yes, I agree with you. It would totally change the whole landscape and there would be no advantage at all for Roth. I don’t see it happening, but I can be wrong. It still jibe with my philosophy of high risk, high reward(since I’m young). The risk is me paying taxes now and them changing the way they tax the whole country, the reward is, if they don’t do away with income tax, then I’ll be pay A LOT less taxes when I retire.
