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I was sort of with the author until I got to the recommended policy change they want to see from legislators: "We should abolish all tax advantaged savings acc
by viridian 8y ago
I was sort of with the author until I got to the recommended policy change they want to see from legislators:
"We should abolish all tax advantaged savings accounts. If the $158 billion in savings were then distributed evenly, every household could receive $1,250 per year and companies like Google would no longer pay HR tax specialists to exploit our tax code."
The author appears to literally suggest we just take everyone's 401(k)s and IRAs for the year, give them away, and abolish the whole system. How is this a reasonable policy?
- resalisbury 8y agoauthor here :hi:, yes the policy section is a bit wishy washy and short on details. I think you would grandfather in existing accounts, but not allow additional contributions starting at some point in the future. edit: I've updated the article to add a little more detail to the policy recommendation.
- barbegal 8y agoTax reduced savings accounts effectively flatten the tax curve because whilst they are available to everyone only those being paid more can effectively make use of them. On the other hand it does incentivice the higher paid to save more for the future rather than spending it now. This can save governments huge amounts when personal savings are used to pay for elderly care and medical treatment as opposed to the government.