The guy is totally off. I happen to know this bit and therefore find everything else rather specious.<p>All countries allow one to contribute tax-free to their pension OR contribute with after-tax income but withdraw without paying tax. US happens to use the former system. You are basically allowed to contribute a certain amount of your income before paying tax - but will pay tax when you receive the pension.<p>The idea is that people have lower income during retirement and allowing them to shift tax burden to retirement will induce them to save more.<p>I don&#x27;t see anything favoring the rich about this system (only inasmuch as people who make more money benefit more from paying less tax - which I have no problem with).