3. Suppose that the President and Congress were to pass a law stating that futur shortfalls in the Social Security program would be funded with across-the-board increases in income taxes at the time of the shortfalls (and well after their tenure as elected officials). How would you expect this law to affect the relative attractiveness of traditional IRAS (deduct your investment from your taxable income in the year of investment) versus Roth IRAS (no taxes on withdrawals and interest of investments in IRAS) for a twentyfive-year-old today? Explain.

3. Suppose that the President and Congress were to pass a law stating that futur shortfalls in the Social Security program would be funded with across-the-board increases in income taxes at the time of the shortfalls (and well after their tenure as elected officials). How would you expect this law to affect the relative attractiveness of traditional IRAS (deduct your investment from your taxable income in the year of investment) versus Roth IRAS (no taxes on withdrawals and interest of investments in IRAS) for a twentyfive-year-old today? Explain.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter27: The Federal Gift And Estate Taxes

Section: Chapter Questions

Problem 5DQ

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