The problem is the 'spending' in the tax code.BY letting you put aside money tax deferred, it means the government does not get its hands on YOUR money now. The taxes are deferred. Worse, if you are rich, you probably make use of the rules which let you donate some of your IRA/401K directly to a charity, avoiding ALL taxes on it. In sure Buffet and Gates make full use of that if they can.SO, the government is 'spending' by giving you a tax deferment. (To them, 'tax spending' is letting you keep your money instead of it going to the government - ie tax breaks are 'spending' to them). It is revenue they don't get. One of the big lib dems, something gucci or similar, has been on this campaign of National Savings Accounts. BUT>..it is not tax deferred. You put it in just like you put in SS and Medicare. You put in 6% of your salary and the government 'invests' it for you in the same 'lockbox' type arrangement, where you will get 'extra benefits' above SS when you retire. You'd have no choice, of course. They'd do away with the tax deferment for 401K and IRAs which would essentially kill them. Probably the same for the contributions employers make and can deduct...they won't be able to ........ but employers will also get dinged 6% that they have to contribute to their worker's 'retirement fund'. And, the government will invest it safely into US Treasury Bonds.....so your money is safe and grows each year. They salivate over the 100 billion a year they could collect on this scheme. Of course, it will go bust in 20 years, but heck, SS is bust, Medicare is bust, and they have no intention of really fixing them, just putting on some band-aids....You bet.......workers will be socked today and get nothing int he future as the government goes bust.Of course, with this scheme, it will be indexed like SS, where the poor manage to collect a lot higher percentage of what they contribute back...... so if you are middle class or above....well, your money will be funneled to thew welfare weenies and queenies.....or your tax money will 'top off' their annual accounts....or both...so it is 'fair'. You are skroowed no matter what.They need that 100 billion a year that they are giving folks now in tax deferments. t.