Another stealth tax hike planned?

Before George Bush raised limits on contributions to my 401k and my wife’s IRA, performance was anemic to say the best. Sputtering along at 10% of my pay and a paltry $2000 per year for the IRA, I worried that I wouldn’t be able to have enough time to work so that I could have a nest egg to supplement my plan. George Bush fixed that – we can actually save enough money now to retire on it. And the limits increased with inflation.

And then came the Obama Administration. Our limits haven’t increased since 2008, like everything else.

And now, Fox Business reports that this Administration plans to cut our contribution limits even more;

The idea: Impose a so-called “20/20 cap” contributions to 401(k) plans. That means workers would have to cap their tax-preferred contributions to either $20,000 or 20% of income, whichever is lower.

But the Employee Benefits Research Institute [EBRI] says this cap would sting lower income earners nearly as much as high-wage workers.

So, let me get this straight; the Administration wants to slash Social Security benefits to seniors, they’ve already cut Medicare to pay for the universal healthcare, they’ve suspended cost of living increases for two consecutive years to Social Security and military pensions recipients and now they’re coming for the money of future retirees?

The whole idea of Social Security was to entice older workers to leave the work force and make room for younger workers to help solve the unemployment during the Great Depression, but now it seems that Obama Administration is making retirement look less appealing to older workers as they strip away and threaten retirees’ financial security.

Category: Barack Obama/Joe Biden, Taxes