Now that we’ve put the fiscal cliff behind us, “a bigger cliff” lies ahead, says Brian Graff, Executive Director/CEO of NAPA and ASPPA. “Fiscal Cliff II: The Sequel” will come at the end of February, Graff says, when the debt ceiling is scheduled to be reached and the country will have to either increase the debt limit or default on our obligations.
“At the same time, as part of the tax deal that was done on New Year’s Eve, there was a 2-month extension on the sequestration of Medicare funds and defense spending,” Graff notes. In addition, at the end of March the current Continuing Resolution for running the federal government is set to expire.
Fiscal Cliff II “will be every bit as serious as Fiscal Cliff I,” he notes, with Democrats seeking more tax revenue and Republicans seeking spending cuts. “That’s why we’re still at risk when it comes to retirement savings incentives. Whenever anyone’s talking about increasing tax revenue, it means we’re looking at potential cuts that we have to fight against.”
Graff urges plan advisors and others in the retirement industry “to keep using the ‘Save my 401k’ campaign to encourage people to let their representatives in Congress know that the incentives for 401(k) savings must be protected.” Since that campaign launched in November, Graff says, “it has generated more than 60,000 e-mails to members of Congress — and it’s making a big difference.”
Graff’s comments came in his January video update for NAPA Net. To view the video, click on the box in the right margin.
