Alicia Munnell, who served as an assistant Treasury secretary from 1993 to 1995, alleges tax-advantaged retirement pots disproportionately benefit the wealthy and had done little to incentivize workers to save more
Revelation 13:16-18 “Also it causes all, both small and great, both rich and poor, both free and slave, to be marked on the right hand or the forehead, so that no one can buy or sell unless he has the mark, that is, the name of the beast or the number of its name. This calls for wisdom: let the one who has understanding calculate the number of the beast, for it is the number of a man, and his number is 666.”
Important Takeaways:
- Economists from the left and right call for 401(K) tax benefits to be AXED to help fund Social Security benefits
- Tax benefits on 401(K)s should be axed in favor of higher Social Security payments, says a report co-written by a former aide to President Clinton.
- Alicia Munnell, who served as an assistant Treasury secretary from 1993 to 1995, claims retirement pots with tax breaks disproportionately benefit the wealthy.
- She made the claim in the report co-authored by right-leaning economist Andrew Biggs – where they say such benefits have done little to incentivize workers to save more anyway.
- Cutting the perks on 401(K)s and Individual Retirement Accounts (IRA) could save the Government almost $200 billion, they argue – and that windfall would be better used plugging shortfalls in Social Security payments.
- The paper – ‘The case for using subsidies for retirement plans to fix social security’ – has attracted a widespread backlash with one retirement expert labelling it a ‘preposterous idea’ since being published last month.
- One user wrote: ‘If you take away the tax benefit, who the hell is going to save to a 401(K) anymore? This would get people to save less and rely on the government more.’
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