Rethinking retirement savings

President Barack Obama released his 2014 budget plan Wednesday afternoon.

The 3.8 trillion dollar plan is an effort to reduce the deficit by $1.8 trillion in the next 10 years.

The plan is also meant to raise money for infrastructure and education programs with higher taxes on the wealthy,as well as a cigarette tax increase from 1.01% to 1.95%.

The greatest disagreement from both Democrats and Republicans has to do with changes in the way Americans save for retirement.

In the plan, saving for IRA's would cap at $3 million and could cut more than $400 billion in Medicare and Social Security.

Cuts for such programming would be done in a variety of ways from negotiating prescription prices, to charging wealthy seniors more money.

Filed in: Politics

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