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$1.3T 401(k) Tax Break Ended to Avert 210% GDP Debt

6/21/2026

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Summary

Story summary

Kent Smetters proposes ending the 401(k)/403(b) tax deduction, forgoing $1.3-$1.4 trillion over ten years to fund low-income retirement accounts.
He warns U.S. debt could hit 210 % of GDP within about 20 years.
He warns the Social Security trust fund may run out around 2032, cutting benefits to about 83 % of scheduled levels.
He cautions markets could react within five to ten years like Germany’s 1930s collapse or Britain’s Liz Truss episode.

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Story summary

Kent Smetters proposes ending the 401(k)/403(b) tax deduction, forgoing $1.3-$1.4 trillion over ten years to fund low-income retirement accounts.
He warns U.S. debt could hit 210 % of GDP within about 20 years.
He warns the Social Security trust fund may run out around 2032, cutting benefits to about 83 % of scheduled levels.
He cautions markets could react within five to ten years like Germany’s 1930s collapse or Britain’s Liz Truss episode.