Stop the Steal (from The Main Street Journal)

I’m not talking nonsense about a theft of an election, but a serious theft of your ability to invest locally. By liberal Democrats, no less, who should know better. According to attorney Mat Sorensen, two parts of the draft reconciliation bill Congress is now negotiating, Sections 138312 and 138314, would “effectively cut off IRA investments into small businesses, start-ups, real estate (using an IRA/LLC), and crowdfunding. Any IRA investor who is already invested into these assets… will be forced to sell their asset prematurely or will be forced to distribute it. Early distribution will result in taxes and penalties for most IRA investors that aren’t yet at retirement age.” While the Dems proposing this apparently believe they are closing a loophole on the rich, they are in fact undermining hundreds of thousands of grassroots, smaller investors who are using self-directed IRAs and related vehicles to invest their tax-deferred pension savings locally. Please read Sorensen’s piece, our feature article, and write a letter to your representation IMMEDIATELY urging removal of these provisions. This bill could come up for a vote any day now.”

Stop the steal! – The Main Street Journal (substack.com)

Published by markskidmore

Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times.

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