You Decide: Is Obama's "Aid" Really Designed to Help the Middle Class?
Earlier today President Obama offered details on his package of “Middle Class Aid.” Whether or not the proposals are in the best interest of working Americans is yet to be determined. Of particular concern are the proposals that he suggests to help us “save for retirement.”
As we’ve covered in the past, any tax “advantages” you receive from the government are coming directly from the selfsame tax collector. Due to that fact, it’s difficult to believe the government’s tax “advantages” are entirely selfless.
For example, according to CNBc, the first three proposals would:
“Require companies that do not offer retirement plans to enroll their employees in direct-deposit retirement accounts unless the workers opt out.
“Increase the “Savers Credit,” a tax credit for retirement savings, for families making up to $85,000.
“Change some of the rules for 401K employer-sponsored savings accounts to make them more transparent.” [Emphasis added.]
When the president’s administration uses a crisis to change the rules of tax “advantaged” retirement savings accounts it fails to instill confidence. The savings accounts seem fully automatic and require workers to opt out if they are uncertain of the terms.
Basically, save first (with the government) and ask questions later (…perhaps when it’s too late, and your retirement is already being “protected”). Like all tax “advantaged” accounts, these new proposals are likely to include numerous restrictions and penalties if savers would like to access the funds before whatever time the government stipulates as when it prefers. It sounds like “Middle Class Aid” worthy of considerable skepticism.
You can read more of CNBC’s uncritical coverage of Obama’s proposals here. What do you think of the proposals… are they designed in the best interest of the middle class?