Quote:
Originally Posted by =X=
Hi PKFFW,
Thanks for the comments. Yes I agree the middle class has a lot of burden put on them since they pay the highest taxes. However the middle class tends to have one tool that can prove advantages. Most companies have a 401K plan where a person can allocate up to 15% of their earnings, pre tax.
Any thoughts?
=X=
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We have something similar here called superannuation. The employer is forced to put 9% of your wage into it no matter what. Then you can elect to put extra in(up to a certain limit) pre-tax.
The problem is that all the money is still taxed, just at a lesser tax rate. All money going in is taxed at 15% instead of whatever normal tax rate you are meant to pay based on how much you earn. It is a benefit but not a real lot.
The other problem with our superannuation system over here is they seem to change the rules on it every couple of years. I don't like the idea of putting my money into a fund that I'm not allowed to touch again until I am 65 years old knowing that they may change the rules a couple of years later. If the new rules mean it is not advantageous to me any more, I can't get my money back out again and put it in some other investment.
Cheers,
PKFFW