401k help for all?

I read this article on Yahoo! News. Following are two exact quotes...

“Families could get 401(k) retirement accounts and up to $1,000 in annual matching funds from the government under a plan offered Tuesday by Democratic presidential candidate Hillary Rodham Clinton.”

“Her campaign said that for every $7 million estate that gets taxed, at least 5,000 families would receive the matching funds.”

Let’s do some quick math.

5,000 families helped by each $7 million estate.
x $1,000 matching funds.
= $5,000,000 taxed from each estate of $7 million.

Therefore…

$7,000,000 value of estate.
-$5,000,000 tax calculated from above.
=$2,000,000 amount remaining of the estate BEFORE other taxes!

Then…

$2,000,000 balance from above.
-$740,000 estate tax of 37% (assuming the $5,000,000 for 401k program is 100% tax deductible. If not, this number could be $2,590,000, more than the balance, so you would owe the government $590,000 for having had a wealthy parent and you get nothing!)
=$1,260,000 amount remaining after federal estate tax.

Then you have state and local taxes.

So, if your parent dies with $7,000,000 in the bank, you will see LESS than $1,260,000. Or LESS that 18%!!!!!

My parents have nowhere near these amounts of money so it has no direct effect on me either way, but does this sound fair to you?

Read more about it.

http://news.yahoo.com/s/ap/20071009/ap_po/clinton_retirement_accounts

Think for yourself.

Make up your own mind.