While if thegovernment chooses to increase the tax rate for the young, the effectsofthe tax-deferred policy for enterprisepensions will be just the opposite.
This way capital gains and dividends will be taxed at a top rate of 15%, whereas the investment return on deferred pay is all eventually taxed as ordinary income at a top rate of 35%.
In a taxable account, net long-term capital gains are taxed at a rate lower than the ordinary income-tax rate for withdrawals from tax-deferred retirement plans.