Deficit Relief?

Well, if you ever look at my facebook, about a week ago I posted on my wall about an article I read in the Wall Street Journal. It was written by David Luskin who is high up in a well known investment firm/financial planning. I can't remember the name of the firm now. Anyway, in the article he talked about how the Bush tax cuts, which are running out in 2010 have a provision that in 2010 IRAs over 100,000 dollars, can be converted to Roth IRAs without penalty. The rich people who have these IRAs are going to want to convert them because, after 2010, their taxes are going to go up tremendously. So, in 2010, they will change them over and pay the 35% tax rather than the higher tax that will be imposed in the future, as well as the penalty. So, this firm figures if only 10% of the people holding these IRAs take advantage of this, that will shoot billions of dollars in to the federal budget. In speaking with their customers, they are sure that the percentage will be much higher than 10%. They have also spoken with the CBO who have only recently began to investigate the possibilities of this happening.

Question---Who do you think will want to take credit for this sudden surge of revenue???? Hint, I am writing this in blue. Those opposed to the Bush tax credits are not going to want to admit that giving the rich a break can do good for the economy.

Now, here is the answer to the question---make sure that in November we elect fiscal conservatives who will not waste this boon, but will wisely put it towards our national debt and start helping our country to live within its means!!!

As a sidelight, I am guessing that the states will also receive a generous portion of revenue next year as well.

Of course, Mr Luskin wrote about all of this better than I am able to, so look it up in the Journal. I believe it was last Thursday's issue.