Earlier this week, 10 Free Market & Conservative organizations joined the Taxpayers Protection Alliance in an open letter to Republican Leadership urging them to oppose the Democrats’ Tax and Raid of Americans’ retirement savings.
The letter reads in part, “If passed, Biden’s IRA changes would ban many after-tax contributions from being converted to a Roth IRA for investors making under $400,000 per year, making this a potential violation of President Biden’s tax pledge. Worst of all, Biden’s IRA changes would result in additional audits, retroactive taxation, and a list of accounts over $2.5 million – likely the next target when Congress needs more money. Biden’s IRA changes would create insecure retirements for millions.”
Signers, include: the Taxpayers Protection Alliance, American Commitment, Americans for Tax Reform, Center for a Free Economy, Center for Freedom and Prosperity, Citizens Against Government Waste, Consumer Action for a Strong Economy (CASE), Institute for Liberty, Institute for Policy Innovation, National Taxpayers Union, and the Small Business & Entrepreneurship Council.
You can read the entire letter here and below.
Dear Senate Minority Leader McConnell, House Minority Leader McCarthy Ranking Member Crapo, and Ranking Member Brady,
We, the undersigned organizations representing millions of taxpayers and retirement savers across the country, would like to thank you for your steadfast leadership in opposing this reckless $3.5 trillion social welfare bill. President Biden and Congressional Democrats have proposed sweeping changes to individual retirement accounts (IRAs) – which they claim will close “loopholes” that only benefit the super-rich. In reality, Biden’s IRA changes are a direct assault on middle class retirement savers from every generation – including Millennials, small business owners, middleaged families, and retirees. This is a blatant attempt by Democrats to steal millions of Americans’ hard-earned retirement savings to fund their multi-trillion social bill.
If passed, Biden’s IRA changes would ban many after-tax contributions from being converted to a Roth IRA for investors making under $400,000 per year, making this a potential violation of President Biden’s tax pledge. Worst of all, Biden’s IRA changes would result in additional audits, retroactive taxation, and a list of accounts over $2.5 million – likely the next target when Congress needs more money. Biden’s IRA changes would create insecure retirements for millions.
Since their creation in 1998, Roth IRAs have enjoyed strong bipartisan support in Congress. They are also popular with Americans, with the total value of assets in Roth IRAs quintupling from 2008 to 2018. Thanks to the financial benefits Roth IRAs provide retirement savers, they have become the bedrock of America’s retirement system.
It is estimated that more than 56 percent of Americans nationally invest in IRAs. A Joint Economic Committee found that IRAs contribute to a “high national saving rate [which] allows long-term interest rates to fall, creating an environment conducive to economic growth.” Rather than supporting programs that stimulate our economy, President Biden and the Democrats want to destroy IRAs.
Ike Brannon, a conservative economist, recently wrote that instead of attacking the IRA system, Congress “should be thinking critically about how to boost savings all across the income distribution rather than basing our tax policy on spite.”
Former U.S. Senator Max Baucus (D-Mont.) emphasized that changes to retirement should be done in a bipartisan manner, recalling how he and Senator Chuck Grassley (R-Iowa) worked together “on Republican bills, Democratic bills and bipartisan bills.”
President Biden and congressional Democrats are attempting to pass their massive spending bill at the expense of hardworking Americans’ retirement savings on a completely partisan basis. This Democrat tax hike on the middle class must be stopped.
On behalf of the millions of Americans worried more than ever about their retirement, we thank you for your leadership and ask that you ensure these dangerous provisions never become law – protecting retirement savers of all income levels.