They would have done it by now, had the November 2010 elections not wiped them out.
Maybe I’m ignorant. Someone educate me please.
I thought that IRAs and 401Ks do NOT cost the government tax revenue long term.
Yes, they can claim that less is paid in taxes in the year the money is put away for retirement, but it is taxed as ordinary income in the year it’s withdrawn. So tax paid to the government in those years would be higher than they would be forecasting without IRA and 401K money.
So long term, it doesn’t “cost” the government any tax revenue, because the taxes are paid on the back end, not year by year.
If I’m wrong, somebody educate me.