35K Shares By Kyle Becker 11 months ago
Did you think that was your money you earned and were saving for your golden years? Sorry, the Obama administration has other plans for your retirement and it doesn’t include you sunning yourself on a beach in Tahiti.
The Obama administration is set to put caps on IRAs and other retirement savings shelters, where people have been piling up (gasp) millions of dollars in assets. The Hill reports:
President Obama’s budget, to be released next week, will limit how much wealthy individuals… can keep in IRAs and other retirement accounts. The proposal would save around $9 billion over a decade, a senior administration official said, while also bringing more fairness to the tax code.
The senior administration official said that wealthy taxpayers can currently “accumulate many millions of dollars in these accounts, substantially more than is needed to fund reasonable levels of retirement saving.” Under the plan, a taxpayer’s tax-preferred retirement account, like an IRA, could not finance more than $205,000 per year of retirement – or right around $3 million this year.
It’s part of the package deal of chaining Social Security to inflation (CPI) as one of the exceedingly modest entitlement reform proposals in Obama’s “budget.” Along with that, expect about $600 billion in tax increases — you know, because it would be unreasonable for the government to get its own house in order. The government already spends around $3.75 trillion a year and borrows 40 cents of every dollar.
Jonathan Hoenig of Capitalist Pig points out how bad ideology leads to bad policy on his blog while linking the video above. He ties it together for people, in case they haven’t figured it out yet:
The underlying philosophy is collectivism, whereas “nothing in society will belong to anyone, either as a personal possession or as capital goods.” As Marx put it: from each according to his ability, to each according to his need.
Shortly put, watch out. Your savings — your life — is no longer yours.
Hyperbole? One doesn’t even need to go to the real socialist bad boys of the twentieth century for examples why Hoenig is right. Just the recent events in Cyprus will suffice.
H/T Michelle Ray (@Galtsgirl)