What's He Know That I Don't?

Professor Mankiw points out that Senator Obama chooses not to defer significant amounts of income from taxation. Why?

I don't know. Maybe he is getting bad tax advice. Or maybe he is expecting vastly higher tax rates in the future when the accumulated savings will need to be withdrawn and taxed. As Obama economic adviser Austan Goolsbee has written, "Future increases in tax rates potentially threaten to significantly reduce the value of your retirement savings and may even mean that you should not save in 401(k) accounts at all."

Look on the bright side, Senator -- maybe you'll lose and your taxes won't go up so much.

Dem2008 Primary Posted by jk at March 26, 2008 6:10 PM