When levels of personal retirement saving increase, consumer borrowing always increases correspondingly.
The increased tax revenue the government would receive as a result of business expansion would not offset the loss in revenue from personal income taxes during the first year of the plan.
Even With tax incentives,some people will choose not to increase their levels of retirement savings .
Bankers generally will not continue to lend money to Businesses whose prospective earnings are insufficient to meet their loan repayment schedules.
The modified tax structure would give all taxpayers, regardless of their income, the same tax savings for a given increase in their retirement savings.