Along with nearly every other congressional Republican, both Texas Senators, Cornyn and Cruz, along with Michael Burgess who represents my district in Texas adopted a resolution nullifying an Obama-era regulation that encouraged states to establish auto-IRA programs. Trump just signed the legislation into law Wednesday.
How odd that the party that is always arguing about how overzealous federal regulators were trampling the rights of state and local governments, would themselves support legislation that does that very thing.
These auto-IRAs allow small businesses to provide a retirement conduit for their employees who are otherwise unable to provide a 401k retirement package. Under the auto IRA program employers are not required to match employee contributions as is the case with 401k plans. This benefits the owner’s of small businesses whose profit margins are often tight, making it less likely for them to provide access to a workplace retirement account. And though this limits the value of these government-run plans, they still benefit employees without access to any other salary-deferral savings option. Though these local and state IRAs are automatic when hired by a small business owner, the employee can opt out if they so choose
According to a report in MONEY “Some 55 million Americans lack access to savings plans through their employer, and research shows that without them very few people save on their own.” Forbes reported that “in 2011, almost half of working Americans were not offered a retirement account by their employer — the result of a longer trend in which, from 1999 to 2011, the percentage of workers being offered such plans declined from 61% to 53%.”
This creates a serious financial crisis for many working families. By removing this option for small businesses the GOP-controlled Congress and the president have taken a side that benefits Wall Street over Main Street and reneged on those who voted for them to help improve their quality of life
There’s no rational reason why your elected official would make it more difficult for working families to be able to automatically choose to have some of their income set aside in an IRA retirement plan beyond doing the bidding of Wall Street. Bank and savings IRAs do not pass through the Wall Street machinery and thus fail to enrich large financial institutions that create many of the 401k’s employers currently use.
The evidence keeps mounting that most GOP voters continue to vote against their own best interests