That's right. Republicans want to penalize savers in order to reward business, but they call it stimulating the economy. The owners of business will surely prosper under their plan, but workers will not.
The proposals under discussion would potentially cap the annual amount workers can set aside to as low as $2,400 for 401(k) accounts, several lobbyists and consultants said on Friday. Workers may currently put up to $18,000 a year in 401(k) accounts without paying taxes upfront on that money; that figure rises to $24,000 for workers over 50. When workers retire and begin to draw income from those accounts, they pay taxes on the benefits.
Rumors have circulated for months that negotiators were debating including a cap as a way to help offset the revenue loss from a reduction in business tax rates that Republicans have put at the center of their plan. Reducing contribution limits would be, in effect, an accounting maneuver that would create space for tax cuts by collecting tax revenue now instead of in the future.
This is what you get when you choose to live by the rules of budget reconciliation, rules designed to get around the Senate's 60-vote rule. Under them any tax cut must by definition be temporary and cannot increase deficits over the next ten years. In other words, there is no tax cut.
Once again it's the Senate's filibuster rule which stands in the way of true reform of anything in this country, along with the ubiquitous discriminatory attitude of government toward money in the case of taxes, some of which (business') is more equal than other (yours).
It's long past the time in this country when the people revolted against this system and demanded a smaller government which spends less. That's where true tax cuts can come from. Anything else is simply rearranging the deck chairs on the Titanic.
