re: Here They Come! Why Congress Might Have to Mess with the 401(k) (Posted on 11/29/12 at 2:19 pm to CarrolltonTiger)
quote: It looked at data from Denmark, where the pension system is similar to that in the U.S., and found that every dollar that government spent on tax breaks increased total savings by about one penny. ==================================== Anyone care to point out the PAINFULLY obvious flaw with this "conclusion"?
Since no one bit... first, the government doesn't "spend" $1. Second, and more importantly the study makes no attempt (from what I can tell from teh poorly written article) to account for the benefit (and wealth created) by investement over the term of the 401k holding time. Nor does it account for the additional taxes to the government as a result of that increased wealth created by the increase of available capital.
It's a pizz poor one-dimensional analysis that wouldn't fly in even a crappy MBA program. But hey! It makes great propaganda!