Seriously!?
You may as well ask why businesses get a better tax deal than individuals and why brokers make more money from the 401k system than the participants. While on that topic, ever wonder why you don’t get to deduct those 401k contributions, or medical spending accounts, or dependent care spending accounts?
And for those of you ready to fire off a reply about how you get to deduct yours, take a minute. Does it contribute to your itemized deduction? Rather than let you take a deduction, which would help non-mortgage holders surpass the standard deduction limit, thus reaping the benefit of itemized deductions, you sign a Salary Reduction agreement, where your employer reduces your salary by whatever amount, and then puts it into your 401k, or gives it to a private company to hold until you file the appropriate dependent-care or medical reimbursement form–all the while earning interest on that money and keeping it if you don’t file acceptable claims in time.
Why not just let you write it off (deduct it)? Wouldn’t that help you more? I suggest you call your lobbyist. =^o
Unfortunately Neo, realizing you are being screwed is the easy part. Red Pill, Blue Pill time my friend.