Of all the misguided, ridiculous items being discussed in preparation for the GOP’s tax reform push, the capping of pre-tax 401(k) contributions has to be the single most obviously misguided and ridiculous. If this capping nonsense makes it into the bill they release, it’s prima facie evidence that these people are out of their f***ing minds.
Vanguard released the following statement:
“The 401(k) plan is the cornerstone of the future retirement security of millions of Americans. As such, Vanguard is greatly concerned over any legislation that would negatively impact investors’ ability or incentive to save for retirement. Proposals that mandate contributions be made after tax should be carefully reviewed to take into account their impact on incentives to save.”
Yes, Vanguard has a dog in this fight. However, it is also the most respected advocate for the individual investor and consumer of financial services in America. No person, firm or organization has done more to help the 100 million households in this country prepare for retirement. No one has done more to even the scales and tilt the balance in favor of everyday people and away from the orcs of Wall Street.
The idea that disincentivizing working people from saving a portion of their paychecks is a worthwhile tradeoff so that the 1,100 households with a net worth above $11 million can be relieved of the estate tax is worse than any sort of elitism you’ve seen from Hillary or Nancy Pelosi on their worst day. No reasonable person in either party could possibly adopt this position as being something that’s good for the middle class. Anyone saying otherwise is a soulless liar or embarrassingly uninformed.
Let’s hope reason prevails.