Trash is piling up in city streets all over France.
It’s all due to the proposed increase in the earliest retirement age for government benefits by two years.
Would Americans respond the same way if Social Security benefits are changed in a similar way?
Clearly, the system has to change to deal with the drastically different demographics from decades ago.
However, the necessary changes the federal government should have been making over time continue to get kicked down the road to the next President and Congress.
So, why was it so easy for them to raise the required beginning ages for retirement account withdrawals from 70½ to 72, and now 73 with hardly a fuss?
It’s very simple … it only affects the top 20% of tax payers, most of whom would rather not have to pay the taxes on their retirement savings until it is absolutely necessary.
Most of the people in the bottom 80% take out more than required after they retire.
So, why should your kids go on strike?
If you’re in that top 20%, the government is counting on you to hate paying the taxes and wait until you are forced to take money out.
When your kids inherit your pre-tax retirement accounts, many of them will take the money out all at once and pay taxes at a rate of 30% to 40% or more, regardless of whether you are in the top 20% or bottom 80% of tax payers!
The government is counting on you to defer, defer, defer, so they can collect 40% of your money all at once rather than 12% over time!
If your kids knew this was happening, they just might go on strike.
Withholding visits with your grandchildren might be enough to make you take action now, so you can start moving your forever-taxable money to never-taxable.