Recent legislation greatly expands the limits on tax-deferred savings accounts, including 401(k) plans and IRAs. This legislation is the latest in a quarter century effort by the federal government to convince Americans that saving through tax-deferred retirement accounts results in lower lifetime taxes.
Most people believe that saving in tax-deferred retirement accounts, such as 401(k) plans and traditional IRAs, will reduce their total taxes over their lifetimes.
Under the old (defined-benefit) pension system, the investment returns were good, but workers were penalized for switching jobs. Under the new (defined-contribution) system, pensions are more portable, but the returns are too low to fund adequate retirement incomes.
What is the best way to help recently unemployed people get health insurance?
To appear to be "sitting idly by as Rome burns," would be damaging to anyone's hopes of re-election. Bush, having witnessed his father's fate, understands this all too well.
Ever spend a week with only today's paper? I was on vacation last week down in the islands; hot, sunny, beautiful. But on this island there were no televisions, newspapers, or Internet connections. So my last link with reality was the Saturday, January 12th New York Times.
It's State of the Union time again, and boy has the state of our union changed since last year.
Russia and China currently have the capacity to launch an intercontinental ballistic missile at an American city, and a third nation–North Korea–very nearly does. Iran and Iraq have limited-range missiles and within a few years will have ICBM capability. Libya and Syria have missile development programs. North Korea is selling its missile technology to other nations, and Iraq has substantial stockpiles of bioterrorism toxins that could be launched on a missile.
Americans are caught in a steel trap. Lower consumer prices are good for the economy–especially in a recession–and good for fighting wars. But the politically powerful steel industry is addicted to protective tariffs. So Congress and President Bush may use the cover of war and recession to raise the cost of living for all of us.