Skip to comments.Obama plan: Cut tax breaks for richest retirement savers (Camel's nose under the tent)
Posted on 02/22/2014 11:34:32 AM PST by Red in Blue PA
President Barack Obama plans to ask Congress in early March, as part of his fiscal 2015 budget, to reduce some of the tax advantages for employer-sponsored retirement plans for higher-income earners, according to published reports.
Plus, the president wants to limit the value of all tax deductions, defined contribution exclusions and IRA deductions to 28% of income and include an overall cap on all retirement accounts, including pensions, that could bring in $1 billion a year in new tax revenue, according to a Pensions & Investments report. Read Companies bracing for 1-2 retirement punch .
According to the report, the proposals are designed to direct more of the tax preference for retirement savings toward getting more low- and middle-income people into the habit of saving.
Based on current tax brackets, Pensions & Investments reported that the 28% limit would reduce the tax advantages of retirement savings for people earning more than $183,000 or couples earning more than $225,000. And the overall cap for all tax-preferred retirement accounts would limit them to providing an annual retirement income of $205,000, which would currently cap tax-preferred accounts at $3.4 million, but could go lower as interest rates rise.
(Excerpt) Read more at marketwatch.com ...
You know you want to.
We all know what is coming...
Government confiscation all of all pensions (unions and government workers exempted), 401k and IRA funds.
To be replaced with “guaranteed” government bonds.
It will be for the children.
And for the votes of the free sh*t army.
No one could have seen this coming....
The best course for America is to cut Obama from the oval office
“if you like your 401k - you can keep your 401k”
Starve the Beast.
Do everything you can to minimize taxable transactions. The only way our problems can be fixed is to starve the Beast knows as the Federal Government.
Oddly enough, I don’t see this as such a big deal. Basically, 401(k) and IRA accounts would be held to the same standards as pensions under Federal tax law — at least in terms of their tax deductibility.
My wife and I have worked hard all of our adult lives for everything we have and obama wants to redistribute it to those who do not and will not work.
No one is really listening to this idiot anymore
If you like your 401k, CASH IT IN, now!!!
He is panicking.
He is on defense with nothing but some sandbags and left over springfield rifles........ he is dredging around in the bottom of the barrel for some crap to sling
It really suks to be Obama
They make it very clear that until all taxes are paid in full, that isn't your money - it's theirs.
“He is panicking.”
I’m not so sure. I think we’re up over 50% now of people on some form of government assistance who undoubtedly would like more and don’t care who it comes from as long as it’s not them.
I’ve found that if I assme the worst, the most extreme that the left could conceivably go, I’ll rarely be wrong. History, especially recent history, shows us that they work incrementally. Sometimes when they think they’ve come close enough to the goal or gotten a majority of the people (especially the “youth” or the large army of gibme constituency) on their side, they make a dramatic final push. Sometimes when they think they have an unassailable leader (as in a minority or female), they make a push in spite of an opposed majority. Sometimes when they’ve overrached, they pull back from the termite tunnel they’ve carved and start another one. But they never accept the will of the people until they manage to get enough on their side. If they never do, and they get an “Obama” in place, they don’t care. But they never stop.
It’s harder for conservatives, because we’re not trying to forge new paths, we’re trying to protect the foundation.
Just how does placing a “limit” on something generate a billion bucks of revenue?
Oh, by STEALING it from those to whom it actually belongs...
“No one is really listening to this idiot anymore”]
Right. Nobody has any money, Obamacare is the biggest bust since New Coke, and the Democrats aren’t going to sign on for any more uni-partisan legislation.
I don’t think this idea is going any where.
Obama deciding which people have earned too much money, what could go wrong? < /S >
For what it's worth, there's a lot to be said for a plan to scale back on your contributions to these plans anyway. The tax-deductibility comes with some strings attached that make these plans less flexible for an astute investor.
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