Let Them Eat Cake!

As an amendment to Matt's post this morning, I would point out that it's a bit more complicated than simply saying that things like 401(k)'s, HSA's, and the mortgage interest deduction don't help the little person get ahead. Of course they do. Not too-well-off people can save money using these things.

The point is that, while they are a sop to the poor/middle class, they are really a huge boon to the rich. Middle class types like me definitely get a tax reduction from them, but of course I don't pay nearly as much in taxes as a stockbroker in Manhattan, so he can save a lot more in taxes than I can unless you limit the deductions to certain income ranges. To this extent, the Roth IRA really is something that helps the little guy get ahead, because you can't have one after your income crosses a particular threshold.

So, it's not that Rove et. al. don't care about helping the poor or middle class. They just don't care about helping them nearly as much as they care about helping the rich.

UPDATE: Kevin Drum points out that the whole thesis of the conversation is an outright lie, since the Republicans didn't initiate the home ownership deduction or the 401(k).