Several provisions affecting advisors contained in President Obama’s budget blueprint drew sharp reactions from many corners of the industry, with groups variously praising measures to increase funding for securities regulators and blasting provisions concerning taxes and retirement planning.
Obama's 2014 budget would channel an additional
For groups like the
In a statement, the coalition said that it is "pleased that
Last year, competing bills emerged in the
But participants in that debate have indicated that the question of advisor oversight is likely to be a back-burner priority in the current congress, leaving the
Obama billed his budget as an offer at compromise that would take a "balanced" approach toward deficit reduction, replacing the across-the-board sequester cuts with more targeted reductions, including trimming
The tax provisions in the
A fact sheet published by the
The anti-tax group Americans for Tax Reform combed through Obama's budget proposal and identified what it described as nearly
Likewise, the group identified various tax measures affecting the financial services sector that it says are "littered throughout the budget," including levies on brokerage firms and life insurance companies.
"These costs will be passed along in the form of higher fees, bigger commissions and lower returns to shareholders," the group said, pegging the sum of the miscellaneous financial system tax provisions at
Other measures in the president's budget proposal would impact the retirement plans for small business owners, drawing the ire of a trade group representing pension advisors and others.
"Without any further incentive to keep the plan, many small business owners will now either shut down the plan or reduce contributions for workers," ASPPA Executive Director and CEO
Graff further criticized what he described as an imbalance between small business owners and executives at major corporations, who can sock away large sums for retirement through nonqualified deferred compensation arrangements.
"We think it is grossly unfair that a small business owner will be limited to retirement benefits that are nowhere near as valuable as executives’ at large corporations," he added.
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