August 20, 2008
Senior citizens are on fixed incomes and many investments put them into a higher tax bracket due to 1099s they receive from CDs, IRAs, etc. The Fed's socical security system is in ruin and for a senior to supplement their s.s. income they turn to annuities due to the liquidity they provide. Allowing them to grow their nest eggs tax-deffered keeps them in a lower tax bracket allows them to leave legacy money for thier heirs.
DO NOT FIX THE ANNUITY SYSTEM. IT IS FINE THE WAY IT IS