Revenooer Rants: Obama to hammer savers even more
April 10, 2013
INCLINE VILLAGE, Nev. — We can hardly wait for Obama's "budget," scheduled for release this week.
Early leaks of some of its contents are sobering, though not surprising, given his demonstrated lack of respect for savers and investors in this country.
F'rinstance, we hear he will suggest that $3 million is just more than enough to stash into your retirement accounts. Once your IRA and/or other retirement accounts hit that lofty level, no more contributions; just pay more tax — $9 billion, that is, over the next decade.
"Under current rules," says a White House statement released late last week, "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."
Now just a darned minute — who's to say what constitutes "reasonable levels" of retirement savings? Answer — the same anti-capitalist who once uttered words to the effect that "There will be time for business to make profits — but now is not that time."
And this, when we're hearing, increasingly, of the paltry level of savings (particularly for retirement) accumulated by baby boomers — just as they're heading toward the "golden years."
Business Week notes that the administration's statement didn't explain in detail how the proposal would work. "It's a plan killer," quoth Brian Graff, executive director and chief executive officer of the American Society of Pension Professionals and Actuaries. "As business owners reach the cap, they will lose their incentive to maintain a plan, and either shut down the plan or greatly reduce benefits. This would leave workers with a greatly diminished plan or without any plan at all."
Speaking of which, "Tax Freedom Day" is on the horizon, though will loom a little later this year — again, thanks to Obama and his minions.
The Tax Foundation, which tracks this historic date each year, notes that Freedom will come on April 18, 2013 – five days later than last year, mainly due to the fiscal cliff deal that raised federal taxes on individual income and payroll, not to mention the "Affordable Care Act's" investment and excise taxes.
And, in case you're wondering, Nevada's freedom arrives on April 14, leaving it at number 21 in the ranking (from highest to lowest tax states). Connecticut leads the pack (May 13), with California not far behind in sixth place (April 24).
Have a Happy April 15!
Jeff Quinn, the author of this article, is a shareholder in Ashley Quinn, CPAs and Consultants, Ltd., with offices in Incline Village and Reno. He can be reached at 831-7288, welcomes comments at email@example.com, and invites readers to consider his other commentary at http://blog.nolo.com/taxes.