He said this on MSNBC today. If he doesn’t know, capital gains tax DOES NOT apply to 401 (k) distributions. Withdrawals from these retirement accounts are taxed as ORDINARY INCOME. So why would he say that we need to lower it for 401 (k) plans?
They also do not apply to ANY retirement plan, contributions or withdrawals. Capital gains apply to gains made from the sale of an asset outside of a retirement account, such as a home, the sale of individual stock outside of a retirement plan, a mutual or index fund, or a brokerage account.
Should McCain hire some economic people that actually know what they are talking about?
Republicans SALIVATE over any opportunity to lower the capital gains taxes. Maybe McCain doesn’t know that capital gains tax doesn’t apply to 401K disbursements but if he does know he probably doesn’t care. The whole idea is to dangle a little carrot in front of the middle class that will allow the rich to save millions and billions on capital gains.