DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Is our current financial system the product of our tax laws?

**Lyikmcmb** · 01-30-2011, 10:11 PM

Okay, so why should I care whether people invest in stocks or pension plans? And Americans are definitely not saving too much, so I don't see why I should care if the current tax policies promote saving.

Current tax policies do not "promote saving". Exemptions to the policy of taxing earned income AND the time value of saved earned income simply reduce some of the current distortion in favor of immediate consumption.

The reason somebody might care about the form the savings take (mutual fund versus the purchase of individual securities) is that actively managed mutual funds are quite expensive for investors in terms of fees.

01-30-2011, 10:11 PM	#5
Lyikmcmb Join Date Oct 2005 Posts 480 Senior Member	Okay, so why should I care whether people invest in stocks or pension plans? And Americans are definitely not saving too much, so I don't see why I should care if the current tax policies promote saving. Current tax policies do not "promote saving". Exemptions to the policy of taxing earned income AND the time value of saved earned income simply reduce some of the current distortion in favor of immediate consumption. The reason somebody might care about the form the savings take (mutual fund versus the purchase of individual securities) is that actively managed mutual funds are quite expensive for investors in terms of fees.
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