Tuesday, February 04, 2003

Screw the poor:

Here are some excerpts from an article about Bush's proposed new savings accounts (from
  • [Bush's] proposal would create two new consolidated savings accounts: Lifetime Savings Accounts (LSAs) and Retirement Savings Accounts (RSAs).

    1. [Individuals will] be able to contribute up to $7,500 a year to these accounts regardless of their income ...
    2. ... contributions would be after tax ... but all withdrawals would be tax-free ...
    3. There would be no restrictions on the money's withdrawal.

  • ... the new accounts would only help investors who have the $7,500 to $30,000 a year to invest. Because the proposal eliminates deductible IRAs, low-income taxpayers who need a tax break now to encourage savings (when the money is contributed, rather than withdrawn) actually will be worse off.


Post a Comment