
Uncle Gary's Bedtime Story: ‘Why Congress Invented Tax-Deferred IRA Accounts'
I hope you're tucked in. Get used to the feeling of being tucked in. Don't you feel safer now? Settle down. I'll tell you a story.
Once upon a time, there were two United States Senators. One was a Democrat. The other was a Republican.
They were very concerned. The government's deficit was up again this year. Of course, it was always up again, every year. But this was becoming a problem. It was making it harder to borrow money. Creditors wanted evidence that the government could pay its bills without facing the nasty trolls called bond vigilantes.
They had to find ways to bring in more revenues.
B. We've got to get more money out of them. Any ideas?
A. We can give them a tax deduction each year to invest money for their old age.
B. Why would that get more money out of them?
A. We'll tell them they can defer paying any income tax on the profits until age 70.
B. But then we can't get their money.
A. Sure we can. We'll borrow against it. We'll use their future tax payments as collateral.
Continue reading “Gary North: Have the IRA Accounts All Been Hijacked?”




