[elil17]

Except most people in America don't pay capital gains taxes on their retirement savings anyway.

401ks and IRAs are free from capital gains taxes. Anyone can save enough money in those vehicles for retirement unless they start saving really late in life. For those who start saving late, most of their wealth will be in basis anyway.

[bullfightonmars]

Right 401ks and IRA are taxed as regular old income when withdrawn and are subject to the same tax brackets as everyone else.

[elil17]

Right but they're only taxed once (either you don't pay income tax going in or you have a Roth account and you don't pay it going out). Either way, ignoring the fact that you might change tax brackets, it's as if you took the money post tax, invested it, and then didn't have to pay any capital gains on it.