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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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