Bingaman (and Heritage Foundation!!) Team up for Nanny-State Retirement Planning

There has been a fair amount of discussion recently about NM Senator Bingaman’s mandatory IRA proposal in Congress. If passed, this legislation would place yet another burden on businesses that would have to take their employees’ money and set up the retirement programs. I will be the first to admit that the Rio Grande Foundation does not offer such programs because they are expensive and costly to manage for a small organization. Instead, I take advantage of Roth IRAs.

As Rob Nikolewski with Capitol Report notes, Bingaman’s plan was developed with the help of the Heritage Foundation, an organization that we usually see eye-to-eye with, but not this time. My view is that if Congress wants to mandate that we save for retirement, they need to transform Social Security into a sustainable, ownership-based program rather than a Ponzi Scheme that is destined to go broke and disappoint those (at least of my generation) who expect to rely on it in their old age.

Print Friendly, PDF & Email

3 Replies to “Bingaman (and Heritage Foundation!!) Team up for Nanny-State Retirement Planning”

  1. Paul, I agree with you concerning the mandatory IRA proposal but I disagree with your take on Social Security. It will be around for you to collect but likely not in its current form. And there lies the problem. The full retirement age should have been adjusted as Americans lived longer and longer. It wasn’t until the 1980s that any age modification was made. Another is needed now. Plus, let’s not forget, SS covers more than just retirement and includes survivor benefits and disability coverage.

    While I understand and support the move to transform Social Security it would be a tough sell given that most Americans want the “security” in Social Security. Any IRA account would likely involve Wall Street and Americans are too gun shy for that. Plus most don’t understand IRA’s and really don’t want to be bothered with learning it. But make it mandatory and interest will increase.

  2. This is not the first time that the Heritage Foundation has leaned left. There was a front page article in the Albuquerque Journal about a year and a half ago where the Heritage Foundation stated that “everyone agrees that health insurance is a good thing.” I for one, do not agree that health insurance is a good thing except for catastrophic insurance which is pretty affordable. Furthermore what everyone bandies about as health insurance is not really insurance. Insurance in its basic form is to cover the unexpected. Health insurance today commonly covers routine doctor visits, non-life threatening diseases, and medical costs of a trivial nature. If health insurance got back to basic insurance, it might be supportable. For example, a policy that “kicked in” when expenses exceeded $10,000 might make sense. So for the Heritage Foundation to support egregious unconstitutional heavy handed government interference in our lives seems contrary to their creed of “free enterprise, limited government, individual freedom, traditional American values, and a strong national defense (from their website).”

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.