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.

On 10/17/2020 8:13 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.

Not a problem according to Forbes.


Bidens Pledge to €œEqualize Benefits€� Sparks Debate


"But the arguments fervency belies its import. Even if a Biden
administration redistributes the tax benefits of retirement savings away
from higher earners to lower ones, your retirement savings are unlikely
to change radically. And this pales in comparison to larger issues, such
as getting more Americans to actually enroll in retirement savings plans
in the first place.

€œThe language used makes it seem like a hot button issue,€� said Alicia
Munnell, director of retirement research at Boston College. €œBut its
not going to upend the 401(k) system.€�

Tucked away on the Biden campaign website is an extended list of
proposals to improve the lives of older Americans. One bullet point
states that if Biden were elected president, he would €œequalize benefits
across the income scale, so that low- and middle-income workers will
also get a tax break when they put away money for retirement.€�

As it stands, a raft of tax deductions incentivize Americans to
contribute money to their employer-sponsored retirement plans. Lets say
youre in the 24% marginal tax bracket and save $5,000 annually in your
companys 401(k) plan. That money goes into your 401(k) account before
income taxes are assessed, saving you around $1,200 a year in taxes.

This incentive structure gives high earners a bigger tax break. Someone
in the 37% bracket saves more tax dollars than someone in the 12%
bracket. That same $5,000 401(k) contribution saves $1850 in federal
income tax for someone in the 37% bracket, but just $600 for someone in
the 12% bracket. "

....

"Both the Tax Foundation and the Tax Policy Center estimate that any new
tax credit would need to be about 26% to satisfy Bidens desire to
change the system without adding to or subtracting from how much the
government spends on retirement savings tax incentives€”to be €œrevenue
neutral€� in Washington speak.

Another way to look at the 26% tax credit is how it would equalize the
value of a tax deduction. Instead of getting to deduct that $5,000
401(k) contribution against their personal marginal tax rate€”be it 12%,
24% or 37%€”everyone would get to deduct their 401(k) contribution at the
same 20.5% marginal tax rate, calculates Garrett Watson, a senior policy
analyst at the Tax Foundation. So a $5,000 401(k) contribution would
save all workers the same $1,025 in taxes."

https://www.forbes.com/sites/advisor.../#48f2af611989

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.

On 10/17/2020 8:45 AM, Frank wrote:
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.Â* 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.


And all the Repubs know how to do is lie.

On Sat, 17 Oct 2020 08:53:03 -0700, Bob F wrote:

On 10/17/2020 8:45 AM, Frank wrote:
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.Â* 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.


And all the Repubs know how to do is lie.

They are both very good at that.