https://www.isegoria.net/2010/06/tax-hikes-and-the-2011-economic-collapse/ From the ancient Greek for equality in freedom of speech; an eclectic mix of thoughts, large and small Wed, 22 Apr 2026 02:09:17 +0000 hourly 1 http://wordpress.org/?v=3.6.1 https://www.isegoria.net/2010/06/tax-hikes-and-the-2011-economic-collapse/comment-page-1/#comment-4223 Isegoria Fri, 11 Jun 2010 16:54:11 +0000 http://www.isegoria.net/?p=6494#comment-4223 Both the traditional IRA and the Roth IRA allow an investment to compound without annual taxation. The difference is that the traditional IRA is taxed at the end, at retirement age, at whatever tax rate is in effect then, while the Roth IRA is taxed up front, as ordinary income, at today’s (known) tax rate.

]]> https://www.isegoria.net/2010/06/tax-hikes-and-the-2011-economic-collapse/comment-page-1/#comment-4220 Ross Fri, 11 Jun 2010 16:01:16 +0000 http://www.isegoria.net/?p=6494#comment-4220 Laffer’s always made sense to me. While I very much liked the tone/content of his latest WSJ op-ed piece, I remain confused by his closing recommendation, which was to dump 401k/Keough plans and shuttle monies (after paying taxes) into Roth IRA’s. The argument was, I think, that if tax rates go up, this is somehow more protective. Don’t 401k’s temporarily shelter from taxes as it is? In my ignorance of accounting/tax law, I don’t see the additional value of shifting to Roth, but would be happy to see a mini-tutorial from a savvy Isegorian on the topic.

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