I've got concerns about changing the tax system, now that I'm nearing retirement.
Throw in some numbers just for example. $333,000 Taxed savings, $333,000 Capital gains $330,000 IRA tax defered.
Retirement for a couple.
Assume a $40,000 WR, Correct me if I'm wrong but with the current tax system I suspect 0% taxes. (may take some roth conversions during low income years)
$13,200 from Taxed savings, $13,200 Capital gains $13,200 IRA tax defered. Ya, 0% tax.
The (Rand Paul's) Flat tax seems to be the worst in that I will pay 14.5% on my already taxed savings and 14.5% on my capital
gains. The IRA tax defered, would pay 14.5%. Note this 14.5% is supposed to be high enough to also pay for SS. As it is now, I would not pay any SS on my Taxed savings, Capatal gains or IRA tax defered money.
Seems about $5,800 in taxes on $40,000.
The FairTax, (a sales tax) , you get to spend $23,540 tax free then you are taxed at 23% on all purchases after that.
$40,000 - $23,540= $16,460 and 16,460 x 0.23% = $3,786
Therefore $3,786 in taxes on $40,000.
Any quibbles, different ideas or discussion is welcome.