Earlier this week, former Senator Max Baucus (D-Mont.) penned an op-ed in USA Today assailing a partisan plan by Joe Biden and Congressional Democrats that would fundamentally harm the IRAs of literally millions of Americans. Baucus wrote, “Taxpayers must be able to trust that Congress will honor its promises, especially for those saving for retirement.”
The Democrats’ proposal does just the opposite. In fact, it eviscerates this promise. According to Sen. Baucus, “several of the proposals for retirement savings accounts are retroactive, punitive and confiscatory.”
Interestingly, a journalist who criticized Baucus’ position works for the organization that used confidential taxpayer information about certain Mega Roth IRAs holders. Democrats claim that their proposals would only “affect a tiny number of the rich.”
That is false.
The Biden-Democrat IRA Plan bans after-tax contributions from being converted to a Roth IRA regardless of income level, requires government audits of IRAs, requires forced divestiture of private investments, and subjects investors to retroactive taxation.
Let’s be clear: The Biden-Democrat IRA Plan changes the rules in the middle of the game and is an attack on the huge portion of middle class families and millennials who have invested heavily in private retirement savings for later in life and now face the prospect of an increasingly insecure retirement – and losses – as a result.
Large Retirement Accounts: A Symptom of Bad Policy, Right?
Recently, a column in Forbes asked a thought provoking question: “Are enormous retirement accounts a problem, and should we legislate to prevent future supersized IRAs?”
The article was written by Ike Brannon, (former U.S. Treasury economist) who summed up his answer in one word: “no.” He noted that “most laws that are a response to an anecdote tend to be bad policy with unanticipated side effects, and any effort to prevent another billion-dollar Roth IRA will undoubtedly create a variety of other unanticipated problems…”
Brannon concluded by urging Congress to “be thinking critically about how to boost savings all across the income distribution rather than basing our tax policy on spite.”
Will Democrats Fundamentally Change IRAs without Bipartisan Support?
In his column, Sen. Baucus raised the need for bipartisanship, recalling how he and Senator Grassley (R-Iowa) worked together “on Republican bills, Democratic bills and bipartisan bills…”
The question now for Baucus’ former colleagues is whether or not they will follow his golden rule on bipartisanship or adopt a partisan attack on IRAs to raise revenues for their massive social realignment agenda.