The political class would certainly find pedaling this kind of crap a LOT easier and less painful that making the cuts that you mention (and I favor, btw). But politicians are incapable of cutting anything. We’re still stuck with the Dept of Ed, Energy, and the TVA, for cryin’ out loud.
They figure the American people are going to go along with this because they won’t understand it, but it “sounds” good.
All I know, is the fact that your heirs would get nothing under their system is the thing that MAKES it a confiscation scheme. Can you imagine having a half million or so in an IRA, and have them convert it to these piss poor gov’t bonds and you die a month later? Your kids get nothing?
I fully understand the ramifications of this type of Confiscation.
As you mentioned, the removal of the ability to Inherit.
But also the Forced conversion to an Annuity which disallows the possibility of any Lump Sum Withdrawal.
Many use their IRA or 401K as an Emergency Fund as well as Funding for enhanced Retirement.