Bush's 2005 budget19 Mar 2004
CBPP lists the top 5 reasons why Bush’s plans to establish tax-favored “Lifetime Savings Accounts” and to replace existing Individual Retirement Accounts with “Retirement Savings Accounts” are a bad idea:
- It would be extremely costly over time and would make the nation’s long-term fiscal problems substantially worse.
- The benefits of the proposal would go overwhelmingly to the nation’s wealthiest individuals. (At least they’re consistent!)
- The proposal would do little to boost private saving and, as a result, would almost certainly reduce national saving and thereby have a negative long-term effect on economic growth.
- The proposal is likely to lead to a reduction in retirement savings for those most in need of such savings because it would undermine the incentives for employers to offer pension plans for their workers.
- The proposal would harm state budgets.