Our retirement tax system is broken. Each year, it showers hundreds of billions of dollars of tax breaks primarily on the richest households. But few of these incentives reach the households that need help the most.
Instead of worsening inequality by giving more tax breaks to the rich to shelter their untaxed fortunes for retirement (and which ultimately get passed onto their heirs), Congress must advance retirement legislation that favors those most at risk of retirement insecurity―low- and middle-income workers and their families.
The SECURE Act (HR 2954) and the EARN Act (S 4808) will provide very limited support for those most at risk of retirement insecurity. They will primarily subsidize the wealthy and worsen the racial wealth gap.
We need legislation that better subsidizes retirement savings of low- and middle-income workers. And, we need lower contribution limits for the wealthy, reining in of Mega IRAs, and establishing a lifetime limit on tax-subsidized contributions to retirement accounts by the wealthiest Americans. Most of all, we need to expand Social Security, the bedrock of retirement for most Americans.
If Congress wants to invest billions in addressing our retirement security crisis, you must subsidize retirement savings of low- and middle-income households, not provide a windfall for those at the top. Thanks.
▶ First sent on December 9, 2022 by Jess Craven