Obama Budget Would Cap Retirement Savings
April 11, 2013 by Ben Bullard
Congress is very unlikely to approve President Barack Obamaâ€™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 Obamaâ€™s plan.
While $3 million is a lot of money, itâ€™s not as much as it used to be — and that trend is certain to continue. And, whether itâ€™s an extravagant amount, for those whoâ€™ve managed to save the money or simply a cushion intended to last a retired family 20 or 30 years, itâ€™s not the dollar figure that should raise eyebrows.
Whatâ€™s sinister about the scheme is the way in which it reveals Obamaâ€™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 itâ€™s governmentâ€™s job to redistribute it.
Obama said as much, telling a POLITICO reporter that â€śsome 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.â€ť
Whereâ€™s the incentive to enter the free market when the government is standing in line to confiscate the wealth youâ€™ve worked for?