Taxpayers have been taking advantage of 401(k)s to save for retirement since 1981. As of March of this year, 401(k) plans held $5 trillion in assets on behalf of about 55 million active participants and millions of retirees. This provides a more secure retirement for millions at a time of rising life expectancy and falling birthrates.
401(k) plans have has turned savers into investors. For previous generations, ownership of securities was a privilege reserved for the affluent. In 1983, fewer than one in five U.S. households owned stocks. Now, about half of them do.
We the people demand that Congress finds an alternative means of providing tax relief to help middle-class families and small businesses other than targeting hard-working retirees’ investments. A quick fix for budget makers is not the answer to tax reform.