Nope, Democratic Effort to Tax 401(k) Plans Not an Urban Legend

The idea to nationalize savings is nothing new in liberal circles.

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Over at MSNBC, there is an attempt to debunk the story about how congressional Democrats would like to strip 401(k) and other retirement plans of their  tax-advantaged status. (I have been writing about this.)  But this is not an "urban legend" as MSNBC puts it. This basic idea has been floating around liberal think-tank circles for some time and only now has emerged into the spotlight thanks to a recent House hearing.

As I have written, this is probably smart politics since investing tends to make average folks more Republican. But make no mistake, this idea is more about politics than economics since the current government savings program, Social Security, is headed toward insolvency. Do we really want to create another entitlement?

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