Roth IRA vs Traditional

[Coronita]

[quote=PatentGuy]Flu,

Convincing Nevada that you have your “legal residence” in NV is nice, but what matters is convincing a court (should it come to that), should California disagree.

There are lots (millions?) of U.S. citizens that have homes in more than one state, and picking which one is your “principal” residence should be done with care. At a minimum, I would expect your drivers license to match, and also where you register to vote. As far as I know, you can only have one active, valid drivers license, and you have to surrender any others as a condition.

Having said this, I understand that most (all?) states that have an income tax have laws (upheld by federal courts) that entitle them to collect income tax from you based on all wages earned while you are present in their state. For example, if you are visiting for a sales meeting, or a deposition, or the like. They love to pick on high wage earners like sports starts and media personalities (Google Rush Limbaugh and New York state taxes).

But, I am talking about retirement, when our income will be derived solely from a combination of already taxed savings plus taxible pension plan distributions (CB Plan, IRA, 401K, 403(b), 457). for whatever reasons, the federal courts spanked California for trying to come after Nevada residents for taxes on 401k distributions, even though the plan was funded from tax-free earnings made in California. Doesn’t seem much different than the “you owe us cause that’s where you earned it” laws, but ….[/quote]

Yes, this was my question after I stopped earning money/doing business here. And I know it’s pretty far off into the future. I was just wondering how folks relocate out of CA say they aren’t a resident and yet still own a home and (from what I can tell live a good portion here). The second link that I included highlighted a litmus test which included 29 “tests”. So inquiring minds wanted to know.

[PatentGuy]

Just my opinion, but given the Class Envy Entitlement sensibility that prevails in our country, no way they will replace the income tax with a VAT. They will supplement the income tax with a VAT, but not get rid of the income tax, at least not on “the wealthy”. Far from it. If you are perceived as “rich” you will be demonized and targeted to have your income confiscated and redistributed. It’s only fair. Or social justice. Or whatever. (Sorry if I am channeling Brian).

There will be VAT refunds for the “poor” just like there is the “earned” income tax credit in the current income tax system for redistribution purposes.

Just my opinion.

[PatentGuy]

Just my opinion, but given the Class Envy Entitlement sensibility that prevails in our country, no way they will replace the income tax with a VAT. They will supplement the income tax with a VAT, but not get rid of the income tax, at least not on “the wealthy”. Far from it. If you are perceived as “rich” you will be demonized and targeted to have your income confiscated and redistributed. It’s only fair. Or social justice. Or whatever. (Sorry if I am channeling Brian).

There will be VAT refunds for the “poor” just like there is the “earned” income tax credit in the current income tax system for redistribution purposes.

Just my opinion.

[PatentGuy]

Just my opinion, but given the Class Envy Entitlement sensibility that prevails in our country, no way they will replace the income tax with a VAT. They will supplement the income tax with a VAT, but not get rid of the income tax, at least not on “the wealthy”. Far from it. If you are perceived as “rich” you will be demonized and targeted to have your income confiscated and redistributed. It’s only fair. Or social justice. Or whatever. (Sorry if I am channeling Brian).

There will be VAT refunds for the “poor” just like there is the “earned” income tax credit in the current income tax system for redistribution purposes.

Just my opinion.

[PatentGuy]

Just my opinion, but given the Class Envy Entitlement sensibility that prevails in our country, no way they will replace the income tax with a VAT. They will supplement the income tax with a VAT, but not get rid of the income tax, at least not on “the wealthy”. Far from it. If you are perceived as “rich” you will be demonized and targeted to have your income confiscated and redistributed. It’s only fair. Or social justice. Or whatever. (Sorry if I am channeling Brian).

There will be VAT refunds for the “poor” just like there is the “earned” income tax credit in the current income tax system for redistribution purposes.

Just my opinion.

[PatentGuy]

Just my opinion, but given the Class Envy Entitlement sensibility that prevails in our country, no way they will replace the income tax with a VAT. They will supplement the income tax with a VAT, but not get rid of the income tax, at least not on “the wealthy”. Far from it. If you are perceived as “rich” you will be demonized and targeted to have your income confiscated and redistributed. It’s only fair. Or social justice. Or whatever. (Sorry if I am channeling Brian).

There will be VAT refunds for the “poor” just like there is the “earned” income tax credit in the current income tax system for redistribution purposes.

Just my opinion.

[bob2007]

PatentGuy, I agree with you, and so does the history of government taxation.

[bob2007]

PatentGuy, I agree with you, and so does the history of government taxation.

[bob2007]

PatentGuy, I agree with you, and so does the history of government taxation.

[bob2007]

PatentGuy, I agree with you, and so does the history of government taxation.

[bob2007]

PatentGuy, I agree with you, and so does the history of government taxation.

[PatentGuy]

the 4th law of thermodynamics states that government is ever-expanding, and that taxes to pay for the ever-expanding government are ever increasing.

[PatentGuy]

the 4th law of thermodynamics states that government is ever-expanding, and that taxes to pay for the ever-expanding government are ever increasing.

[PatentGuy]

the 4th law of thermodynamics states that government is ever-expanding, and that taxes to pay for the ever-expanding government are ever increasing.

[PatentGuy]

the 4th law of thermodynamics states that government is ever-expanding, and that taxes to pay for the ever-expanding government are ever increasing.

[Author]

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