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Obama plan: Cut tax breaks for richest retirement savers
Market Watch ^ | February 21, 2014 | Robert Powell

Posted on 02/21/2014 10:56:56 AM PST by reaganaut1

President Barack Obama plans to ask Congress in early March, as part of his fiscal 2015 budget, to reduce some of the tax advantages for employer-sponsored retirement plans for higher-income earners, according to published reports.

Plus, the president wants to limit the value of all tax deductions, defined contribution exclusions and IRA deductions to 28% of income — and include an overall cap on all retirement accounts, including pensions, that could bring in $1 billion a year in new tax revenue, according to a Pensions & Investments report.

According to the report, the proposals are designed to direct more of the tax preference for retirement savings toward getting more low- and middle-income people into the habit of saving.

Based on current tax brackets, Pensions & Investments reported that the 28% limit would reduce the tax advantages of retirement savings for people earning more than $183,000 or couples earning more than $225,000. And the overall cap for all tax-preferred retirement accounts would limit them to providing an annual retirement income of $205,000, which would currently cap tax-preferred accounts at $3.4 million, but could go lower as interest rates rise.

So, who might feel the effects of this proposal? Largely, the top 5% of tax payers. According to the Tax Policy Center, a partnership between the Urban Institute and Brookings Institution, there are about 6.07 million Americans who earned above $200,000 in 2011 and they make up the top 4.2% of taxpayers, according to published reports. Read more about the president’s tax proposal here: Who makes more than $250k, and are they rich?

And what do experts have to say about what the president might propose? In the main, they say the rich need not worry that their tax breaks for saving for retirement will be cut.

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; Front Page News; Government; News/Current Events; Politics/Elections
KEYWORDS: 401k; economy; govtabuse; incomeredistribution; iras; jobs; obama; pension; retirees; retirement; savings; taxes; unemployment
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Now couples earning more than $225K are the "rich" to be punished. Lots of blue states like NY and CA have residents earning this much who don't consider themselves rich. Make the Rat senators vote on this.
1 posted on 02/21/2014 10:56:56 AM PST by reaganaut1
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To: reaganaut1

And the chance of the GOP-majority House considering this legislation is.....


2 posted on 02/21/2014 11:00:18 AM PST by proxy_user
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To: reaganaut1
Just do what they want to do and that is take the entire paycheck and give us a stipend. That is truly the end result they want. Why not just stop the bleeding for goodness sake. Just do it.
3 posted on 02/21/2014 11:00:49 AM PST by napscoordinator ( Santorum-Bachmann 2016 for the future of the country!)
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To: reaganaut1

Another Obama income redistribution scheme.


4 posted on 02/21/2014 11:01:07 AM PST by Innovative ("Winning isn't everything, it's the only thing." -- Vince Lombardi)
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To: proxy_user

Haven’t you heard that Obama doesn’t need Congress, he has a phone and a pen and can rule by executive orders.


5 posted on 02/21/2014 11:02:23 AM PST by Innovative ("Winning isn't everything, it's the only thing." -- Vince Lombardi)
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To: proxy_user

Since Caliph Baraq has established the precedent of changing the Obamacare laws every week or so unchallenged by anyone, is it possible he will able to do this with the tax code also?


6 posted on 02/21/2014 11:03:49 AM PST by nascarnation (I'm hiring Jack Palladino to investigate Baraq's golf scores.)
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To: reaganaut1

“$1 billion a year in new tax revenue” amounts to about 2.4 hours of federal government spending. Where are we going to get the revenue for the remaining 364 days, 19.6 hours?


7 posted on 02/21/2014 11:05:18 AM PST by almcbean
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To: reaganaut1

This only affects small business owners and wage earners.

It has no effect on 0dunga or any of his rich buddies or any of the corrupt-to-the-core creeps who got rich by being elected to government.

What a flaming jerk.


8 posted on 02/21/2014 11:05:34 AM PST by Westbrook (Children do not divide your love, they multiply it.)
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To: reaganaut1
and include an overall cap on all retirement accounts, including pensions

OUTRAGEOUS!

Who is this putz to dare declare how much is "too much" and set a cap on what I might save for retirement?

9 posted on 02/21/2014 11:06:14 AM PST by grobdriver (Where is Wilson Blair when you need him?)
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To: reaganaut1

They’re always wanting to punish the poor bassturd that was smart enough to make something of himself to get where he is and steal whatever he has.
I despise communists such as this turd on a stick.
May his days be few and a incurable pox be upon him.


10 posted on 02/21/2014 11:08:43 AM PST by lgjhn23 (It's easy to be liberal when you're dumber than a box of rocks.)
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To: reaganaut1
President Barack Obama plans to ask Congress in early March, as part of his fiscal 2015 budget, to reduce some of the tax advantages for employer-sponsored retirement plans for higher-income earners, according to published reports.

Except for higher-income earners whose employer was the feral government, of course.

11 posted on 02/21/2014 11:10:17 AM PST by E. Pluribus Unum (Islam is a religion of peace, and Moslems reserve the right to behead anyone who says otherwise.)
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To: proxy_user

No legislation, executive order!


12 posted on 02/21/2014 11:10:26 AM PST by reg45 (Barack 0bama: Implementing class warfare by having no class.)
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To: Innovative

I’m not sure, but I don’t think there has been a budget passed since he won election in 2008, or is it just HIS budgets that haven’t passed?


13 posted on 02/21/2014 11:10:27 AM PST by kevslisababy
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To: reaganaut1

Maybe we need a Ukranian solution to this problem.


14 posted on 02/21/2014 11:13:48 AM PST by ealgeone (obama, border)
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To: grobdriver

Tell the SOB to give up his first along with Pelozi and Rip Off Reid.


15 posted on 02/21/2014 11:14:36 AM PST by ealgeone (obama, border)
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To: grobdriver
Who is this putz to dare declare how much is "too much" and set a cap on what I might save for retirement?

While I agree he is a putz, he is not capping how much you can save for retirement. He is proposing capping how much you can save in a tax-advantaged account.

16 posted on 02/21/2014 11:15:18 AM PST by CurlyDave (`)
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To: Westbrook
it has no affect on the govt workers getting their fat defined pensions....none at all...

I've said all along...we are going to be the old Russia with the Party people getting to take vacations on the Black Sea and the workers fighting for food in near empty groceries....

17 posted on 02/21/2014 11:16:39 AM PST by cherry
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To: napscoordinator
Just do what they want to do and that is take the entire paycheck and give us a stipend.

Exactly. There's never any justification for proposed tax increases, never any goal, purpose, or limit; a tax increase is to generate more revenue for the government, and that should be enough reason in King Obama's eyes.

18 posted on 02/21/2014 11:18:03 AM PST by Lou L (Health "insurance" is NOT the same as health "care")
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To: CurlyDave

it still is a disincentive to work harder and earn more and save more....


19 posted on 02/21/2014 11:18:34 AM PST by cherry
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To: reaganaut1

Message: Don’t be responsible and save for your retirement. Be dependent on the government. I despise this regime.


20 posted on 02/21/2014 11:18:46 AM PST by jersey117
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To: almcbean
“$1 billion a year in new tax revenue” amounts to about 2.4 hours of federal government spending. Where are we going to get the revenue for the remaining 364 days, 19.6 hours?

That's one of the reasons this is such a stupid idea. First, it contemplates gathering an extra $1 billion, which is a laughably paltry sum when compared to current levels of federal overspending. Second, the extra $1 billion is largely imaginary...this measure will realize far less than that, making it an even more futile move.
21 posted on 02/21/2014 11:19:54 AM PST by Milton Miteybad (I am Jim Thompson. {Really.})
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To: reaganaut1

$1 billion? Chump change. Just spend $1 billion less. Don’t tell me that’s hard in a $4.5 trillion budget!

Oh, I forgot, I’m a radical extreme conservative for even thinking that.


22 posted on 02/21/2014 11:20:40 AM PST by Fledermaus (If we here in TN can't get rid of the worthless Lamar, it's over.)
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To: cherry

Russia has a 13% flat tax...

Superpower Role Reversal And The Flat Tax Miracle

http://news.investors.com/ibd-editorials/010413-639471-russia-offers-tax-asylum-to-soaked-millionaires.htm

“Socialism: While the U.S. punishes millionaires, Russia and China reward them. In the upside-down era of Barack Obama, the capitalists act like communists and the communists act like capitalists.

Our multimillionaire president frowns on “millionaires and billionaires” and soaks them with higher taxes.

“Take note, Mr. President: Russia’s flat-tax miracle has helped bring its budget back into balance. Its revenues from income taxes have more than doubled since the single, low tax rate was instated.”

Lower tax rates result in more revenue — Obama is on record of saying that he is more interested in punishing the rich, than really increasing revenue — he said that in an interview before becoming president.


23 posted on 02/21/2014 11:24:03 AM PST by Innovative ("Winning isn't everything, it's the only thing." -- Vince Lombardi)
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To: reaganaut1

It begins. This is a thinly disguised way of confiscating money saved by hard-working individuals.
If this isn’t stopped, oh what’s the use! The American public is too stupid to care.


24 posted on 02/21/2014 11:24:17 AM PST by I want the USA back (Media: completely irresponsible traitors. Complicit in the destruction of our country.)
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To: CurlyDave
Well, I don't read it that way.

the president wants to limit the value of all tax deductions, defined contribution exclusions and IRA deductions to 28% of income — and include an overall cap on all retirement accounts, including pensions

There's already a cap on what I can contribute to my tax-deferred account per tax year (I think $23K for me, this year).
If I have a 401K, an IRA and a pension... he wants an "overall cap".

25 posted on 02/21/2014 11:26:59 AM PST by grobdriver (Where is Wilson Blair when you need him?)
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To: CurlyDave

I see what you are saying, and it’s true. However, I would worry this puts us on a slippery slope to going beyond just tax advantaged retirement savings, setting income levels, etc. And going beyond that.


26 posted on 02/21/2014 11:28:28 AM PST by Dilbert San Diego (TH)
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To: reaganaut1

The thief in the White House clearly intends to steal every dime in America that isn’t hidden under the mattress.

Then come for the mattresses.

And now, if any news organization dares to report it, the FCC Police will be there in a hurry.


27 posted on 02/21/2014 11:29:43 AM PST by Jack Hammer
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To: reaganaut1

“According to the report, the proposals are designed to direct more of the tax preference for retirement savings toward getting more low- and middle-income people into the habit of saving.”

Right, because every fool knows that sticking it to the rich for doing the smart thing ALWAYS motivates the American Idle to wise up and do the smart thing, too.

Dear God,

Would you make abysmal stupidity FATAL for just ONE DAY?

PRETTY PLEASE??


28 posted on 02/21/2014 11:30:57 AM PST by HKMk23 (The Superior Culture will prevail.)
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To: reaganaut1

“that could bring in $1 billion a year in new tax revenue”

and the total budget, the total deficits and the total debts are what?!?!?

is this a financial proposal?

no; its ideological; it’s about “income inequality”


29 posted on 02/21/2014 11:33:46 AM PST by Wuli
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To: nascarnation
Since Caliph Baraq has established the precedent of changing the Obamacare laws every week or so unchallenged by anyone, is it possible he will able to do this with the tax code also?

That would be "Caliph Baraq the Foist" to you.

Nyuq, nyuq, nyuq...

30 posted on 02/21/2014 11:34:28 AM PST by Carry_Okie (Islam offers us three choices: Defeat them utterly, die, or surrender to a life of slavery.)
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To: reaganaut1

Will this be retroactive? Whatever is bad for the stock market is good for America./s


31 posted on 02/21/2014 11:36:27 AM PST by Eleutheria5 (End the occupation. Annex today.)
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To: proxy_user

And the chance of the GOP-majority House considering this legislation is.....

************
Who really knows? Does anyone know what the feckless GOP will do on anything? Its a party without convictions that stands for nothing.


32 posted on 02/21/2014 11:37:27 AM PST by Starboard
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To: reaganaut1

Intended to excite the base for Nov.


33 posted on 02/21/2014 11:38:40 AM PST by what's up (su)
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34 posted on 02/21/2014 11:39:40 AM PST by RedMDer
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To: Dilbert San Diego

They’ll have to pass it to see what’s in it.

But whatever this legislation is, you can be sure it will put us on a long slippery slope as America continues its slide into the abyss.


35 posted on 02/21/2014 11:40:27 AM PST by Starboard
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To: jersey117

No, the message is don’t put your assets in places where the Commie cork soakers know where it is at.

IMHO this is just a first step, the second is conviscation of private retirement funds because they are risky. They’ll take ownership and then send out a little of your savings every month to all those fine outstanding citizens in Section 8 Housing and the freshly minted Border jumping Criminal invaders.

To spread the wealth...


36 posted on 02/21/2014 11:44:00 AM PST by VRWCarea51
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To: I want the USA back
It begins. This is a thinly disguised way of confiscating money saved by hard-working individuals. If this isn’t stopped, oh what’s the use! The American public is too stupid to care.,/p>

Right. Because the majority of the idiots are going to do just like they did with Obamacare. They're going to think somebody else is going to get gouged, not them. Right up until they realize anybody who has a retirement account qualifies as the "evil rich" who needs to have it confiscated. Then, they'll start screaming, like they are now with Obamacare. And it will be too late.

37 posted on 02/21/2014 11:45:58 AM PST by Hoffer Rand (If you like your plan, you can keep your plan. *Asterisk.*)
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To: Milton Miteybad

I also just realized that my math is bad. should be 21.6


38 posted on 02/21/2014 11:47:02 AM PST by almcbean
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To: reaganaut1

I wonder if this would affect Roth IRAs, which are pre-taxed. It must really irritate the feds that they can’t get any more money when those IRAs are cashed in.


39 posted on 02/21/2014 11:47:37 AM PST by grania
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To: reaganaut1

This is how the government creates classes of citizens.


40 posted on 02/21/2014 11:50:22 AM PST by 1010RD (First, Do No Harm)
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To: reaganaut1

The question most people ask themselves this day is not, how hard do i have to work to be successful?

Instead it is: How poor do I need to become to avoid the wrath of the federal government?


41 posted on 02/21/2014 11:50:34 AM PST by GraceG
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To: reaganaut1

Punish those who scrimped and saved their whole lives so that they wouldn’t have to have dog food for supper when they reach 65, so those who lived like dogs can have ‘their fair share’......................


42 posted on 02/21/2014 11:52:57 AM PST by Red Badger (LIberal is an oxymoron......................)
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To: reaganaut1

As it will be in the future, it was at the birth of Man-—
There are only four things certain since Social Progress began:-—
That the Dog returns to his Vomit and the Sow returns to her mire,
And the burnt Fool’s bandaged finger goes wabbling back to the Fire;
And that after this is accomplished, and the brave new world begins
When all men are paid for existing and no man must pay for his sins,
As surely as Water will wet us, as surely as Fire will burn,
The Gods of the Copybook Headings with terror and slaughter return!


43 posted on 02/21/2014 12:03:17 PM PST by CSM (Keeper of the Dave Ramsey Ping list. FReepmail me if you want your beeber stuned.)
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To: reaganaut1

Punishing people who are responsible- the leftwing way


44 posted on 02/21/2014 12:03:39 PM PST by RginTN
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To: grania

“I wonder if this would affect Roth IRAs, which are pre-taxed. It must really irritate the feds that they can’t get any more money when those IRAs are cashed in.”

They already changed that to tax the earnings on your Roth IRA.


45 posted on 02/21/2014 12:08:29 PM PST by Beagle8U (Unions are an Affirmative Action program for Slackers! .)
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To: Beagle8U

“They already changed that to tax the earnings on your Roth IRA.”

What? I completely missed that one. Can you post a source for those of us that can’t keep up with all of the evil this administration is perpetrating on the citizenry?


46 posted on 02/21/2014 12:09:55 PM PST by CSM (Keeper of the Dave Ramsey Ping list. FReepmail me if you want your beeber stuned.)
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To: reaganaut1
It's all about sucking as much money as possible from private citizens
and redistributing it to Holders People and other Obama voters


47 posted on 02/21/2014 12:10:33 PM PST by Iron Munro ("Show me the man, and I'll show you the crime." - Lavrentiy Beria (& Eric Holder))
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To: reaganaut1

Public “servants” and unionistas to be exempt of course.


48 posted on 02/21/2014 12:15:46 PM PST by Organic Panic
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To: reaganaut1

FUBO!! We worked hard and saved for our retirement — and were taxed along the way — federal, state, local, real estate, and on and on. Now, you are going to take our hard-earned money away through MORE taxes!! Again I say — FUBO!!


49 posted on 02/21/2014 12:20:50 PM PST by Polyxene (Out of the depths I have cried to Thee, O Lord; Lord, hear my voice.)
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To: CSM

That is what my financial advisor at Edward Jones said.

I wanted to convert a regular untaxed IRA to a Roth IRA in amounts that would be un-taxable each year. Just draw to the limit that wouldn’t be taxed and stuff it back into a Roth.

She laughed and said they got wise to that trick and you couldn’t do it anymore.


50 posted on 02/21/2014 12:21:04 PM PST by Beagle8U (Unions are an Affirmative Action program for Slackers! .)
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