It has long been one of my primary examples when advising my clients, readers and audiences of why it is extremely dangerous to trust our financial future to our rulers in DC. What sound like great tax and retirement savings plans today, such as Roth IRAs, can be changed at any time by our rulers and they are rarely, if ever, taken to task for their violations of such agreements.
So, essentially, whatever you may or may not have doesn’t really matter, because when the Social Security Trust Fund goes belly up (because the US Treasury decided to default on its’ bonds), the rulers in power at the time are just going to change the law and start taxing all these things that were promised to be “tax-free” or “tax-deferred”? If that’s the case, why on earth would we want to start to contribute to private retirement accounts that the government is just going to change the rules on later? Shouldn’t you be advising clients to keep cash under the mattress and stockpile gold bars?
Not to mention the fact that no one has come forth with anything even remotely resembling an actual plan or even details.
And, why does every debate have to have someone that tries to play the race card?