Government eyeing 401k's for revenue as deficit rolls into the trillions

Spending money in America has essentially grown into a way of life embedded in our culture. We like to flaunt fancy things, show off our cash, and buy useless things constantly. While we are guilty on our end of spending on guilty pleasures, the government is also guilty of overspending. However, their purchases go beyond basic luxury and verge on ludicrous.

The national deficit continues rolling up more into the trillions of dollars every single day, with the Biden Administration hellbent on spending more money. Whether that be on forgiving student loans, or questionably sending over $100 billion to Ukraine. As they spend us to the poor house, they now want to begin raiding American's 401K accounts to access new revenue streams.

Economist EJ Antoni says for starters, the idea there is any kind of revenue problem is just silly.

"If you look at the amount of money the government is collecting as a percentage of GDP, it is at a historic high right now," he says. "You may increase tax rates, but that does not mean you will increase tax revenue...just because you want more of their money does not mean they will comply."

The budget for 2024 is a staggering $6.5 trillion, up over 60 percent from six years ago.

They just keep spending, and sending, now want to dip into our pockets to keep spending. Almost like a spoiled rich child who expects to 'maintain a certain lifestyle.'

"It is not that we need more revenue...we need less spending. If Congress did nothing in January 2021...and let the one-time emergency COVID spending expire...we would have a balanced budget today," he says. "That is how much they have spent the last three years."

To put on an objective hat briefly, Donald Trump also did his fair share of spending. But you could argue every President, regardless of party affiliation, has done so, and overspent at times.

But this Administration has taken it to new, even record setting heights. Their plan to raid American's hard earned life savings to keep spending is maybe the worst idea they could have.

"When you tax savings...you will get less savings...you are essentially eating into people's return on investment, which means even less savings in the long run, which would mean less additional revenue in the future. This is a total lose-lose," says Antoni.

That is not the only problem with their new harebrained scheme.

"Even the amount of revenue they think they would get from this...at best, it would still be less than 10 percent of the deficit," he says. "It is a spending problem, not a revenue problem."

The solution? Well, obviously stop spending. But that is wishful thinking.

"I think the only way it gets solved is when Americans face enough consequences of that high spending...which will create political will to exert influence needed on politicians to get them to stop spending," he says.