A couple of articles in the Wall Street Journal (such as this commentary on page A10 of Monday’s paper (subscriber link)) have my head shaking.
It seems that Congress is considering a couple of bills I like.or at least don’t hate. There’s a proposal to increase the minimum wage, for one thing.and there’s also a measure to require companies to recognize their pension shortfalls (a measure which will likely be the death-knell for defined-benefit pension plans in the U.S.) and which expands 401(k) and IRA plans with increased contributions, and federal tax credits to incent lower income households to contribute (welcome changes, although I’d prefer to see a complete reform of the tax-advantaged savings alphabet soup).
And tied up with those measures is an expansion of the estate tax cut. (How much is our deficit running these days?)
As a result, you have an entertaining political picture. Folks who wouldn’t normally vote for a minimum wage hike can now do so, comfortable in the knowledge that other aspects of the legislation render it un-passable. Folks who actually want the minimum wage hike are the same folks who wouldn’t support the proposed lightening of the estate tax, and are left with an odd dilemma.
And in the meantime, a good idea with regard to retirement savings is stuck in the maelstrom.
Simply amazing.