On 10/17/2020 11:13 AM, Hawk wrote:
Another reason not to vote for the senile pedophile.

https://finance.yahoo.com/news/biden...185735771.html

Do you receive a 401K employment benefit? Not for much longer if
Pedo-Joe wins.


Biden's plan to overhaul 401(k) tax breaks could force some companies to
cut retirement benefits

Megan Henney
Fri, October 16, 2020, 2:57 PM EDT·4 mins read

A frequently overlooked part of Democratic presidential nominee Joe
Biden's platform would upend the traditional tax preferences of
retirement accounts like 401(k) plans €” a change that industry experts
warned could force some small companies to cut those benefits.

Biden has vowed to convert the current deductibility of traditional
retirement contributions into matching refundable credits for 401(k)s,
IRAs and others.

The proposal from the former vice president is intended to level the
playing the field of tax deferral in traditional retirement accounts,
with the intent of boosting saving among low-income earners. But
industry experts cautioned that by reducing the benefits that higher
earners receive, the Biden campaign may have increased the likelihood of
businesses abandoning those retirement benefits altogether.

"If you take the tax deduction away and reduce the tax benefit, without
also addressing the nondiscrimination rules, you've blown up the
bargain," Brian Graff, the CEO of the American Retirement Association,
told FOX Business.

HOW A BIDEN PRESIDENCY COULD CHANGE YOUR TAX BILL

That's because employers who make contributions to a 401(k) must offer
that same benefit to their workers. Under Biden's plan, business owners
would have to reduce their own tax benefit, while continuing to
contribute on behalf of their employees, which is expensive,
particularly during a pandemic.

Some of those bosses €” traditionally the higher-income earners €” may
lack the incentive to offer those retirement accounts if their tax
benefit is slashed, Graff said.

"When you mess up that bargain, you're disincentivizing those small
business owners from having that plan anymore," he said. "Not only is it
unfair to those small business owners, it's going to reduce the
likelihood that they're going to offer those benefits to their
employees. And that's particularly acute in a challenging time like now."

"Tens of millions of people" could lose their plans as a result of the
proposed change, Graff estimated. Small businesses, which would be the
most affected by the new rules, employ roughly 58.9 million people, or
47.5% of the nation's workforce.

BIDEN PLEDGES TO ROLL BACK TRUMP'S TAX CUTS: 'A LOT OF YOU MAY NOT LIKE
THAT'

That sentiment was echoed by Paul Swanson, the vice president and head
of intermediary distribution at CUNA Mutual Retirement Solutions. Small
businesses are typcally privately owned, and the individuals making
decisions about what retirement benefits to offer are the highly
compensated employees who will be most affected by the overhaul.

"If they dont have as much of a personal incentive to offer the plan,
if you take away the incentive, but leave the burden, they may very well
decide its not worth it for them to offer the plan," Swanson told FOX
Business. "So I think there is some risk there. "

Under current law, workers contribute pre-tax dollars to the accounts,
reducing their annual taxable income. (When the funds are eventually
withdrawn in retirement, then the money is taxed). But the system tends
to disproportionately benefit wealthier earners since deductions are
more valuable the higher one's income bracket is.

For instance, a taxpayer in the top income bracket would receive a $37
benefit for every $100 contributed to a retirement account. By
comparison, a taxpayer in the bottom bracket would get just a $10
benefit in exchange for the same $100 contribution.

BIDEN PLEDGES TO HIKE TAXES ON AMERICANS EARNING MORE THAN $400K

The former vice president has pledged to eliminate such deductions and
replace them with flat tax credits for each dollar saved. The campaign
has not specified with the percentage would be, but the Tax Foundation
estimated that a 26% credit would be roughly revenue-neutral, something
the Biden campaign is aiming for. That would mean regardless of their
income, any taxpayer who contributed $100 to a retirement account would
receive a $26 benefit.

"When you boil it down, what this does is, it benefits the people in the
lowest two tax brackets," Swanson, a CFA, told FOX Business. "It
increases the efficiency with which they save; they get a bigger bang
for their buck for participating in a 401(k) program."

Yet he said he unsure whether the plan would actually drive savings
among low-income Americans €” and would actually reduce their monthly
paycheck.

"Lower-income workers, they operate on a shoestring budget," he said.
"They live paycheck-to-paycheck. This proposal will actually decrease
their takehome pay."

SOME RETIREES COULD SEE 5% SOCIAL SECURITY RAISE WITH BIDEN AS PRESIDENT

For instance, if a worker in the 10% tax bracket kicked in $100 to their
401(k), it would only cost them about $90 under the current system,
thanks to the income tax deduction. But under the new one, it would cost
them $100 to save $100.

"At the end of the year, they'll get a matching credit, and it will
benefit them," Swanson said. "But next Friday, their paycheck's going
down. Will that drive the desired behavior? I don't know."

Detractors of the proposal have also noted it would reduce the tax
benefit of traditional retirement accounts for married couples earning
above $80,250 and earning under $400,000 -- violating the former vice
president's pledge to not hike taxes on earners below the $400,000
threshold.

"This increases federal tax on any married couple earning more than
$80,000," Swanson said.

Typical Dem policies of income distribution. Fortunately mine is in the
withdrawal phase.

All the Dems know is how to increase spending and look at pools of money
that they can tax more.