Ding ding ding. We have a winner. They don't even need to pass this to get a huge tax bump. They just have to threaten. This is called a loose - loose. The perfect con for a government that wants more of your money.
It’s not entirely a lose-lose. At least with cashing out, I would get to keep some of my money for myself. With allowing confiscation, the government effectively owns all my money, and can use it to pay down debt, engage in corporate welfare, squander on the poor, women, and minorities (rich in Dem votes), or whatever. Or did you think they would actually keep the money for you eventual retirement???