President Obama wants to make sure that people don’t save “more than is needed,” and his budget proposal includes steps that would limit the amount of money individuals can have in their retirement accounts.
President Barack Obama’s budget proposal would cap multimillion-dollar tax-favored retirement accounts like the one held by Mitt Romney, his Republican rival in 2012.
Obama’s budget plan, to be unveiled April 10, would prohibit taxpayers from accumulating more than $3 million in an individual retirement account. That proposal would generate $9 billion in revenue for the Treasury over the next decade, according to a White House statement released today.
“Under current rules, some wealthy individuals are able to accumulate many millions of dollars in these accounts, substantially more than is needed to fund reasonable levels of retirement saving,” the statement said.
My first thought when I read this headline was to shudder at how eerily similar the proposal sounds to the institutionalized theft that just happened in Cyprus where bank accounts over $130,000 had 40% their deposits simply confiscated. Only two weeks ago, I warned that this would find its way here eventually. I didn’t expect it to be so soon.
This is thinly veiled Marxism sold as “revenue generation,” and anyone who opposes the measure will be accused of not wanting a “balanced approach” to reduce the deficit.
Naturally, the rule wouldn’t apply to President Obama himself, whose retirement will be funded by the taxpayer and include tens of millions of dollars in benefits. Regardless, Obama thinks he’s qualified to decide how much is “too much” for the rest of the country.