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The Obama administration has released a 6 page summary of the President's budget plan, set to come out in full sometime today.
While the budget is already controversial — the plan contains new taxes, a buried cut to Social Security and a cigarette tax — it does contain one provision that seems to rib his old rival Mitt Romney.
On the bottom of page four of the summery, the White House announces a plan to target IRAs:
- Pays for middle-class tax relief by eliminating tax loopholes that benefit the wealthy and special interests.
- Ends a loophole that lets wealthy individuals circumvent contribution limits and accumulate millions in tax-preferred retirement accounts.
As we mentioned last week when we first heard about the proposal, Mitt Romney's IRA would qualify as one of the targeted accounts. The ultra-IRA amassed by the former private equity CEO had some $100 million in it.
The figure raised a number of eyebrows during the election about how, exactly, Romney was able to get so much money into the account. Were the Obama budget to pass, people won't be able to build a tax-preferred account with millions and millions in it moving forward.
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