Posted on 08/25/2020 2:03:44 PM PDT by karpov
Round about a month ago, I took a closer look at Joe Biden’s retirement-related policy proposals, or, more specifically, those of the “Unity Task Force,” which had just released its final document.
One of the items in that document and on the Biden campaign website is a promise to “equalize the network of retirement saving tax breaks” — a proposal that generally translates to eliminating the tax advantages currently enjoyed by retirement savings accounts and replacing them with a “credit” or “match.” The idea is that the tax advantages, or “tax expenditures,” as they’re called, disproportionately accrue to relatively higher earners, and the hope of a change is to provide benefits in equal measure to all income groups.
But how this translates in practice is not clear. An article at Roll Call this morning picked up on the proposal, as did Courthouse News, but neither had more detail, referencing only a 2014 Urban Institute/Tax Policy Center proposal, which provided various hypothetical alternatives.
So what did that proposal suggest? It included a variety of options, including
Reducing total available pre-tax savings (employer and employee) from (at the time) $51,000 to only the lesser of $20,000 or 20% of pay;
Expanding the currently relatively-small “Saver’s Credit” (equal to 50% of the first $2,000 in retirement savings, only for relatively lower earners, up to $$19,500 for singles, $39,000 for couples; and phasing out quickly, to 20%, 10%, and ultimately nothing for singles with $32,500/couples with $65,000 in income) to stay at 50% for higher earners and phase out in a much more gradual manner instead; or
(Excerpt) Read more at forbes.com ...
I postulated, under Obama, that if the Dems win, they will alter the 401k rule such that the ONLY investment available is US bonds and notes.
CA floated getting rid of 401k about 7 years ago.
It died a week later in silence.
“Close... Biden wants to steal your 401(k).”
As I recall the proposal that came from the Obama white house it went something like this. The government would take all of the cash in 401ks, IRAs and other related accounts and replace them with government bonds. At the time, as I recall, this amounted to something around 15 trillion dollars. (Not sure of the number.)
One problem with that was these accounts are invested in stocks. Would the government take the stocks and sell them for the cash? What would be the impact of a substantial selloff on the market? Also, the bonds they would replace the stocks with would probably not even keep pace with inflation. The whole idea was idiocy. But it came from the cash-for-clunkers people. We saw how poorly that worked out.
But imagine how many high speed trains, wind farms and battery factories the government could “invest in” with that much cash.
the D’s want to confiscate as much of your income and wealth as they can get away with without getting their heads blown off trying
they will keep pushing to take your money
and pushing hard too
no sane person would want to reduce Americans’ very low rate of saving, which of course provides the resources for investment in our future economy and jobs
The they can call it “Social Security”!
They need a piggy bank. So what will replace it?
The actual Democrat plan is to seize money in 401ks and let the wise people in Washington take care of it.
Also to spread it around because saving is racist.
Maybe the old rule of property owners only being able to vote wasn’t such a bad idea.
Exactly.
The government would take the stock, vote it, and then force companies to do its will.
Just another method of socialism.
“Bold” “reform”
“Joe Biden’s retirement reforms are the boldest we’ve seen in generations”
https://www.marketwatch.com/story/why-a-joe-biden-presidency-would-help-older-americans-2020-05-29
My prediction. Democrats will propose a retirement tax credit. This will be made refundable for low income people, turning it into a government funded retirement account. Tax favored savings contributions for higher income people will be capped at the government-paid welfare level. Any retirement savings above the welfare level will be fully taxable.
Rework retirement plans that people have been paying into for decades?! Tax them into poverty? Yes, this will go over well.
The last time I read much about this, they were going to means test away SS based on your 401 k input.
If you tried to project any type of retirement this way in an excel spreadsheet you would get a circular reference.
Yep.
F corrupt Biden and the Kleptocrats.
“There are few ways that an average wage earner in this world can save $1 million for their retirement. The 401 k is the way for most folks”.
My 401K did. Politicians have lots of ways don’t they.
Interestingly the Roth version came from Delware Senator Roth. Now a President Biden will kill the benefit.
I guess crashing the stock market will help poor people!
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