The net fiscal result of IIAs is to convert our income tax into a form of consumption tax. Thus, logic and sound financial planning will lead taxpayers to use IIAs as their core saving and investing medium. IIAs do not resolve all tax problems, of course, but they surely are a major step forward. Our government's biggest spending problem relates to the burgeoning growth of entitlement costs. IIAs will provide the taxpayer-loved route to the proper solution to that gigantic fiscal problem.
Time is the priceless element that fosters the compounding of investment growth .
Time cannot be recaptured. Thus, delay in IIA enactment relentlessly continues and compounds the real losses of GDP, jobs, standards of living, and tax revenues that flow from the staff's irrational methodology in making tax revenue estimates concerning tax-deferred savings plans. Even the Treasury Department in its Budget document undercuts its own tax-expenditure estimates upon which tax policy is based. IV, Technical Analysis of the Budget, the Treasury, in effect, points out that all IRA tax deductions are really government assets that always equal the taxpayers' liabilities to pay their tax on account withdrawals. This, in turn, will create more taxes.