President on the State of the Union
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The President proposed allowing taxpayers to make penalty-free withdrawals from individual retirement accounts if the funds are used for the purchase of a residence, education or medical expenses. What the President is suggesting is that taxpayers borrow against their future to pay the expenses they could not otherwise afford in the present.
This is the same philosophy begun by Ronald Reagan when he cut taxes, increased spending and ran up record deficits. The spending of the Reagan era provided a huge stimulus to the economy and many benefited, but the consequences of that are the present recession and inability of government to provide any funding for domestic programs. The Reagan era deficits are the result of government borrowing against the American people’s future. President Bush (is now) suggesting we do this individually.
WILLIAM H. NATHAN
Mar Vista
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