It seems that the new GOP tax-plan won’t just include cuts in tax-rates, it’ll also include cuts to the amount of money you’ll be allowed to invest for your retirement!
According to an article in USA Today, possibly the biggest modification caused by the new tax-plan is the “slashing the maximum limit on pre-tax 401(k) contributions to $2,400 a year, down from the $18,000 IRS limit for Americans under 50 and $24,000 for Americans 50 or older in 2017.” This proposal is thought by Republicans as a way to fund their cuts and avert adding an additional $1.5 trillion to the deficit.
No matter what party you’re dealing with, you can always leave it to Washington to pay for their schemes by robbing the American peoples; and I say “robbing” because if you are reducing my ability to invest my own money, you are taking that money away from me without my consent. Instead of cutting spending, without which we’ll never get out from under the national debt, the GOP decides they’ll limit how much you can invest in a 401K to provide for your own retirement.
Retirement plans like the 401K are supposed to help people help themselves. That way, people become less reliant on government. If Washington goes through with this, they’ll possibly increase the amount people need government money for in their later years, effectively making this plan an example of borrowing money from the right pocket to put in the left. And considering we’re already broke many times over, how does this help?
If Texas wants a return to fiscal sanity and financial freedom, it’s clear that we can’t trust the clowns in Washington to deliver it. It’s time Texas leaves this broken Union and protects her citizens from future D.C. conspiracies. Given enough time, will there be any pockets left un-picked by Washington?