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If there weren't actually tax benefits to using 401ks and IRAs, people wouldn't use them. So let's assume the rich people who use them are in fact intelligent a
by joshuamorton 3y ago
If there weren't actually tax benefits to using 401ks and IRAs, people wouldn't use them. So let's assume the rich people who use them are in fact intelligent and optimizing their savings for minimal tax.
Then the fact that those benefits go disproportionately to the wealthy, is in fact a case of tax benefits going to the wealthy. You can argue that this is fine or expected (people with more money are going to have more money in their savings accounts, duh). But it's true.
- sharemywin 3y agounless they just put a cap on it. like $3 million or something. problem is I've seen 401ks get adjusted so they work for the CEO. like a 100% match on the first 1% then 50% after that. or some other craziness. because 1% of a 1.5M salary is enough the max 401k. so why shouldn't CEO adjust the plan so it saves them like $6K. geez...greed much...
- cheald 3y agoPeople wealthy enough to utilize retirement accounts are also likely to be paying higher tax rates in general, though.
- comte7092 3y agoHigher nominal taxes rates don’t translate directly to higher effective tax rates.