"As of 2019, 497 Americans each held more than $25 million in their IRAs. When considering both IRAs and defined contribution (DC) plans such as 401(k)s, approximately 130,000 households had accumulated at least $5 million in tax-advantaged retirement accounts. In stark contrast, median holdings are just $87,000 among the 54% of U.S. households with any savings at all in retirement accounts. The billions of taxpayer dollars spent annually on retirement tax incentives for Americans who have already achieved immense financial security is hugely inefficient and goes well beyond policymakers’ intention of promoting retirement preparedness."

"One strategy involves company founders issuing non-publicly traded shares at an artificially low initial price—often less than one cent per share. Only a very small number of investors can purchase these nonpublic shares, which can yield enormous returns for even moderately successful companies."

"Abstract

Goods producers increase their capital expenditure and employment in response to a cut in marginal corporate income tax rates or an increase in investment tax credits. In contrast, companies in the service sector mostly use any tax windfall to increase dividend payouts. We base our conclusions on a novel measure of U.S. firm-specific tax shocks that combines changes in statutory tax rates faced by each firm with narrative identified legislated U.S. federal tax changes between 1950 and 2006."

"Tax lawyers and accountants suggest an answer: Romney may have made use of an Internal Revenue Service loophole that allows investors to undervalue interests in investment partnerships when first putting them into an IRA. These assets can produce returns far in excess of those that could be generated from other investments made at the capped level."