Michael Doran (Virginia; Google Scholar) presents The Nice American Retirement Fraud at Duke immediately as a part of its Duke Tax Coverage Seminar hosted by Lawrence Zelenak:
Over the previous twenty-five years, Congress has enacted a number of main reforms for employer-sponsored retirement plans and particular person retirement accounts (“IRAs”), at all times with massive bipartisan, bicameral majorities. In every case, legislators have claimed that the reforms would enhance retirement safety for thousands and thousands of Individuals, particularly rank-and-file staff. However the supposed curiosity in serving to lower-income and middle-income earners has been a stalking horse for the actual goal of increasing the tax subsidies accessible to higher-income earners. The laws has repeatedly raised the statutory limits on contributions and advantages for retirement plans and IRAs, delayed the beginning of required distributions, and weakened statutory non-discrimination guidelines — all to the good thing about prosperous staff and the financial-services corporations that acquire asset-based charges from retirement financial savings. The consequence has been spectacular development within the retirement accounts of higher-income earners however modest and even unfavourable development within the accounts of middle-income and lower-income earners.
Regardless of the benign however deceptive rhetoric about enhancing retirement safety for everybody, the actual beneficiaries of the retirement-reform laws have been higher-income earners, who would save for retirement even with out tax subsidies, and the financial-services trade, whose lobbyists have pushed the retirement-reform legislative agenda.