It is my understanding that Bush’s plan has not been put into details yet, it is still based on what he has said.

So according to what Bush said, it does have an inheritance part:

Options like this will make voluntary personal retirement accounts a safer investment that will allow an American to build a nest egg that he or she can pass on to whomever he or she chooses. Americans who would choose not to save in a personal account would still be able to count on a Social Security check equal to or higher than the benefits of today’s seniors.

If, on the other hand, the details of his plan omit this, than that would seem to directly contradict what he said above. But in the meantime, I don’t think it’s unfair for me to take him at his word.

You have got to stop the inherited wealth myth. The money in your Retirement Plan under the latest Bush proposal does not pass to your heirs, it goes into a life annuity, which by definition terminates upon death (this “life” annuity). The only way to change that is to buy this option in which case, a cut of youur money goes to Morgan Stanley or merrill Lynch or whoever. There is no proposal out there which allows a free pass through of your fund balance to your heirs like an IRA or 401K.

This will not close the gap between the investing and working close almost entirely, as long as their is a lower capital gains tax rate than a tax rate on ordinary income, there will always be a gap and the president will always consider a dollar earned because you got a good tip while playing golf with your buddy at the country club, more valuable than a dollar earned busting your butt at your job.