Tragically, the existing U.S. tax code penalizes this investment and thereby forestalls economic growth. All investment activity is tax free until withdrawn by the saver or beneficiary, thereby eliminating redundant taxation on the same capital. With IIAs, there are no penalty taxes, no forced distributions, nor estate taxes. This common sense bipartisan legislation is the springboard to an American economic renaissance. The vital fuel for this engine is capital.
Capital is derived from the accumulated and ongoing savings and investments of people.
In fact, there is no other source. The existing income tax as applied to personal saving and investing is severely biased against saving and investing. The Individual Investment Account Act simply and effectively strips away this tax bias against saving and investing. Investment activity accumulates tax free until withdrawn by the owner or the beneficiary. There are no penalty taxes, or forced distributions, nor estate taxes upon death.