Study: Closing tax breaks for retirement would do little to help budget

[alp227]

Source: The Washington Post

As Washington considers closing a profusion of tax breaks in its quest to reduce record budget deficits, a study suggests that some targets might produce far less cash than is commonly thought.

Tax preferences for retirement plans, such as 401(k) accounts, rank among the biggest money losers for the federal government, with official projections showing a loss of about $600 billion to federal coffers over the next five years. But a study set for release this week suggests that the accounts would have to be closed, or contributions sharply limited, to realize much in the way of budget savings — a move that could undermine some of the nation’s most popular retirement tools.

“Given the questions about the future of Social Security, this is no time to be making bad policy decisions about private savings,” said Brian Graff, executive director of the American Society of Pension Professionals and Actuaries, which conducted the study.

The analysis highlights the murky math surrounding hundreds of tax breaks that collectively deprive the U.S. Treasury of more than $1 trillion each year. Known as “tax expenditures,” the list includes dozens of popular credits, deductions and other policies that benefit many special interests, but also millions of ordinary taxpayers.

Read more: http://www.washingtonpost.com/business/economy/study-closing-tax-breaks-for-retirement-would-do-little-to-help-deficit/2011/05/27/AGBMauEH_story.html

[sakabatou]

1. Now combine that with ending the wars and repealing the tax cuts

Tah-dah.

[msongs]

2. "Closing.."? how bout "closing" half the military bases overseas? nt

[sarcasmo]

3. The hedge-fund thieves will find a way to get their hands on the 401k cash .