Photo above – the Portland Oregon far left “Frog Brigade” protests outside the Capitol during Trump’s state of the Union address. When asked if they opposed Thrift Savings accounts for workers, the only answer was “ribbit” . . .

Everyone deserves more retirement savings opportunities. right? Maybe not. Here’s why democrats could oppose Trump's new “Thrift Savings Plan” (see links below).

First of all, the “Trump Thrift Savings Plan” isn’t actually from Trump. It’s a modification of Biden’s “Secure Act 2.0”, which was also intended to win elections with the votes of grateful seniors, and anyone else hoping to live that long. Linking Thrift Savings Plans to either Trump or Biden doesn’t make them inherently evil, of course.

The Thrift Savings Plan has a disarmingly simple rationale: It’s exactly what is ALREADY available to Federal Workers, who don’t have access to corporate 401K accounts. So if you’re a PRIVATE SECTOR worker with no 401K access, this seems only fair, right? Give them a deal similar to what the government give’s its own workforce. Who could say no to THAT?

Um . . . Harvard it turns out. In an analysis just just last year, Harvard tried to eviscerate 401K accounts. Harvard's reasoning? 401K savings enable “wealth inequality”. Stop laughing. This is really true. Read the link.

Harvard's theory is that if anyone is doing well enough to set aside tax deferred money aside for retirement, then they are TOO well off. Someone else on a lower rung of the economic ladder should get the money instead. The article isn’t clear what those impoverished workers and welfare recipients should get if we end 401KS and IRAs, however. Just that nobody should get tax deferred savings while hunger exists in America. This is a disarmingly simplistic approach too, no? Take away tax deductions because some people who don’t pay any personal taxes (more than one third of all of earners, per the Factually link at bottom)

This is the same sort of logic – that everyone above the lowest earners should be taxed more – which inspires partisan calls to eliminate longstanding deductions for home mortgages, property taxes, health expenses, college savings programs like AOTC and LLC, etc. The starting assumption by certain politicians seems to come down to: “All your money are belong to us”.

This is probably NOT what actual workers would vote for, if it were put to a referendum. Even rich people, who complain the poor don't get enough public benefits, are caravaning by the thousands to escape California and it’s new wealth taxes. Corporate moguls, professional sports GOATs, actors, rappers, singers (who are distinct from rappers), Bitcoin buccaneers . . .

So far nobody in congress has put on a frog costume to denounce the proposed Thrift Savings Plans. But you can’t rule it out. My response: why didn’t you denounce the same plan when it was passed for government workers? Were you afraid of alienating your own voting base?

I’m just sayin’ . . .

Trump announces new retirement plan at State of the Union

Rebalancing Retirement: How 401(k) Plans Exacerbate Inequality and What We Can Do About It

47% of Americans pay zero federal income tax.

retirement and pensions