Congress is very unlikely to approve President Barack Obama’s recommended budget, submitted Wednesday after much delay.
But if the President got his way, Congress would cap the amount of money people could save in tax-preferred retirement accounts so that no account could earn an annual return of more than $205,000. As U.S. News reports, that means accounts that today hold about $3 million would have reached their savings limit under Obama’s plan.
While $3 million is a lot of money, it’s not as much as it used to be — and that trend is certain to continue. And, whether it’s an extravagant amount, for those who’ve managed to save the money or simply a cushion intended to last a retired family 20 or 30 years, it’s not the dollar figure that should raise eyebrows.
What’s sinister about the scheme is the way in which it reveals Obama’s liberal, regressive attitude toward capitalism and wealth. It stems from the punitive idea that those who earn a lot of money no longer need money as much as others do, and that it’s government’s job to redistribute it.
Obama said as much, telling a POLITICO reporter that “some wealthy individuals are able to accumulate many millions of dollars in these accounts, substantially more than is needed to fund reasonable levels of retirement saving.”
Where’s the incentive to enter the free market when the government is standing in line to confiscate the wealth you’ve worked for?