“We are in a mess because people are not saving enough. This plan would discourage saving.”
Yes, Sir.
And no one I know will see their 401k savings at retirement. The Government will “absorb” those accounts in the next 15-20 years to “fill the gap” and “even the playing field.” I guarantee that.
I suggest making all income made via a traditional savings account tax free for the next 25 years.
People are not saving because a hundred dollars in 1956 savings is worth maybe $10.00 today in purchasing power. The key to stop this nonsense is a solid dollar with salaries that are not inflated to bring the illusion that you are going better than you did before. Wealth is never how many dollars you have but what is the purchasing power of what you have.
Raise minimum wage and prices go up to match the income level of the workers, as a bonus the wage earner continually creeps into a higher tax bracket.
I believe you are wrong. The government will make the economy divided into working folks who either cannot or can afford to invest; then there are the government workers (fed, state, local) who will get their investment shares, and of course those who own their business such as lawyers... In the end we are becoming europe for purposes of lifestyle equality and those in power will make us the surfs.