After weeks of infighting between moderate and progressive Democrats – and in the aftermath of Democrats’ stunning defeat in Virginia – it appears that President Joe Biden and House Speaker Nancy Pelosi (D-Calif.) are doubling down in their promise to raid Americans’ IRAs to fund their multi-trillion dollar dumpster-fire of a social spending bill.
The IRA provision is not about raising revenue because Democrats admit the proposed raid on IRAs would only net about $4.3 billion over the next decade. This is equivalent to a rounding error within the massive Biden-Democrat spending plan.
Yet, the damages would be far greater for middle-income Americans, including:
- Tax hikes
- Empowering the IRS to audit your IRA
- Banning Roth IRA rollovers for millions of Americans
By including these IRA changes, Biden and the House Democrats have signaled they’re coming after the hard-earned retirement savings of Americans. They also signal that they don’t value or want Americans to save for retirement, and that they’ll change the rules in the middle of the game – ignoring decades of bipartisan work to encourage Americans to save for retirement.
Rep. Reed Submits Amendment to Strip Changes to IRA from Bill
One glimmer of hope is that Rep. Tom Reed of New York (R-NY) submitted an amendment to the Rules Committee that would strip the entire section of the bill that imposes new taxes and audits on IRAs.
Given the partisan nature of these negotiations, it is yet to be seen if House Democrats will allow Rep. Reed’s amendment fair consideration before voting.
As Eyes Turn to the Senate; Senator Sinema Signals Opposition
Soon the real debate will start in the Senate. It has been widely reported that Sen. Kyrsten Sinema (D-Ariz.) opposes these IRA changes – and with good reason as laid out above.
Raiding retirement savings to pay for the Biden-Democrat wealth redistribution plan and handouts to favored progressive causes at the expense of American retirees, investors, small business owners, and young savers is not smart.
Senator Wyden: “I’ll have to see all the details”
Just last night (11/3), Senator Ron Wyden (D-Ore.) – who chairs the Senate Finance Committee (D-Ore.) and floated similar IRA changes – told Bloomberg’s Ben Steverman, Laura Davison, and Laura Litvan, “It seems that the House has added a provision back in,” and “I’ll have to see all the details.”
Time will tell if Senate Democrats have seen the light and are planning to protect IRAs or if Senator Wyden will instead lead the crusade against millions of diligent savers.
One thing is certain: Americans’ hard-earned retirement savings should NOT be a Congressional piggy bank.