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Coalition Supports Resolution to Block "Obamacare for your IRA"

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Members of Congress:

We, the undersigned organizations and individuals, represent millions of Americans in defense of free markets and constitutional liberties. As such, we believe Congress must exercise its authority granted by the Constitution to halt the Obama administration's executive overreach. This is particularly true when such action by the administration has attracted bipartisan opposition owing to the massive negative effects it would have on Americans' retirement savings.

We urge you to support H.J. Res. 88, introduced by Reps. Phil Roe (R-Tenn.), Charles Boustany (R-La.), and Ann Wagner (R-Mo.), which uses the Congressional Review Act to disapprove of the Department of Labor’s (DOL) fiduciary rule and prevent it from going into effect. Under the fiduciary rule, the DOL claims authority never granted by Congress to greatly restrict investment choices for 401(k)s, individual retirement accounts (IRAs) and other saving vehicles.

In the earlier, proposed regulation, referred to by many as “Obamacare for your IRA,” the DOL did not even bother to hide its contempt for the intelligence of American savers. It said most Americans can't "prudently manage retirement assets on their own." Based on this paternalism, the administration now mandates that investment professionals—even if they are serving self-directed investors—must adhere to the government's one-size-fits-all definition of "best interest" for the investment products they offer. The final rule leaves no room for individual savers to decide what their own "best interests" are. 

Ninety-six House Democrats have expressed concern that the fiduciary rule could limit access to retirement planning for poor and middle-class Americans. Center-left economists from the Brookings Institution and Progressive Policy Institute have concluded that the rule would cause many Americans to lose their current brokers and could cost savers $80 billion over the next decade. 

Put simply, the rule would make it much more difficult for individuals to open and maintain an IRA, and for companies to offer 401(k)s. As leading experts say, many brokers will stop serving households with less than $50,000 in assets. The restrictions, therefore, amount to a higher tax burden on Americans by making it harder for the vehicles for retirement saving, designed by Congress, to lower that burden.

IRA holders could also lose their ability to invest in gold, real estate, and other nontraditional assets if DOL bureaucrats deem these choices to be not in their "best interests."

We believe the federal government should vigorously prosecute actual fraud by financial professionals, but otherwise leave savers free to seek guidance and make investment choices they deem in their own best interests, taking account of their own individual circumstances and preferences. We urge Congress to do everything in its power to defeat the DOL's destructive fiduciary rule, including passing this resolution of disapproval under the Congressional Review Act.

Sincerely,

Kent Lassman 
President 
Competitive Enterprise Institute
 
Lisa B. Nelson
Chief Executive Officer
American Legislative Exchange Council
 
Grover Norquist 
President 
Americans for Tax Reform 
 
Carrie Lukas 
Managing Director 
Independent Women’s Forum
 
Heather Higgins 
President & CEO
Independent Women’s Voice 
 
Phil Kerpen 
President 
American Commitment
 
Coley Jackson 
President 
Americans for Competitive Enterprise 
 
Brent Gardner 
Vice President of Government Affairs
Americans for Prosperity
 
Dan Weber
CEO 
Association of Mature American Citizens
 
Norman Singleton 
Senior Vice President
Campaign for Liberty
 
Andrew Quinlan
President 
Center for Freedom and Prosperity
 
Timothy Lee 
Senior Vice President 
Center for Individual Freedom
 
Tom Schatz
President
Council for Citizens Against Government Waste
 
Wayne Brough 
Chief Economist & Vice President for Research 
FreedomWorks Foundation
 
George Landrith 
President 
Frontiers of Freedom
 
Andrew Clark
President
Generation Opportunity
 
Andresen Blom 
Executive Director 
Grassroot Hawaii Action, Inc
 
Andrew Langer 
President 
Institute for Liberty 
 
Seton Motley
President 
Less Government
 
Gregory T. Angelo
President 
Log Cabin Republicans
 
Kyle S. Hauptman
Executive Director
Main Street Growth Project
 
Dee Hodges
President
Maryland Taxpayers Association
 
Willes K. Lee 
President 
National Federation of Republican Assemblies
 
Lewis Uhler 
President 
National Tax Limitation Committee
 
Pete Sepp 
President 
National Taxpayers Union 
 
Dave Wallace 
Founder 
Restore America’s Mission 
 
Karen Kerrigan 
President & CEO 
Small Business & Entrepreneurship Council
 
David Williams 
President 
Taxpayers Protection Alliance                              
 
Lisa Miller 
Founder 
Tea Party WDC
 
Kevin L. Kearns 
President 
U.S. Business and Industry Council