If you don’t think an Obama, Pelosi, Reid run government would result in a dramatic swing to the left, read US News and World Reports article on congress’ discussion of takng over people’s 401K’s. 401K’s are not ‘rich people’ savings plans they are middle America’s retirement and savings plans, and Dems are looking to make them into ‘government created’ accounts. Would Obama, Dems Kill 401(k) Plans?
I hate to use the “S” word, but the American government would never do something as, well, socialist as seize private pension funds, right? This is exactly what cash-strapped Argentina just did in the name of protecting workers’ retirement accounts (Efharisto, Fausta’s Blog). Now, even Uncle Sam isn’t that stupid, but some Democrats might try something almost as loopy: kill 401(k) plans.
House Democrats recently invited Teresa Ghilarducci, a professor at the New School of Social Research, to testify before a subcommittee on her idea to eliminate the preferential tax treatment of the popular retirement plans. In place of 401(k) plans, she would have workers transfer their dough into government-created “guaranteed retirement accounts” for every worker. The government would deposit $600 (inflation indexed) every year into the GRAs. Each worker would also have to save 5 percent of pay into the accounts, to which the government would pay a measly 3 percent return. Rep. Jim McDermott, a Democrat from Washington and chairman of the House Ways and Means Committee’s Subcommittee on Income Security and Family Support, said that since “the savings rate isn’t going up for the investment of $80 billion [in 401(k) tax breaks], we have to start to think about whether or not we want to continue to invest that $80 billion for a policy that’s not generating what we now say it should.”
Hat Tip to Smart Girl Politics original article Kiss Your 401k Goodbye!
Filed under: Economy, Independent, Moderate, Obama, Politics | Tagged: 401k, democrat control, democrats 401k, democrats saving, retirement saving, savings account
You guys must be well-stocked in tinfoil.
[...] Hat Tip to Smart Girl Politics original article Kiss Your 401k Goodbye! Democrats Discuss Taking Over People’s 401K’s [...]
[...] Hat Tip to Smart Girl Politics original article Kiss Your 401k Goodbye! Democrats Discuss Taking Over People’s 401K’s [...]
[...] Retirement funds, particularly 401K’s, are at risk. As previously mentioned in the article Democrats Discuss Taking Over People’s 401K’s Democrats are looking to eliminate the tax break for 401K’s and to subsidize a takeover of [...]
[...] funds, particularly 401K’s, are at risk. As previously mentioned in the article Democrats Discuss Taking Over People’s 401K’s Democrats are looking to eliminate the tax break for 401K’s and to subsidize a takeover of [...]
Well the people of America have done it again. I guess this is proof that Americans are very politically illiterate. First they re-elect George Bush and now they have to give the Democratic part more power to screw the American people over. The bad part of all this is that the smart ones that actually pay attention to politics and vote for the person that would actually do a good job has to suffer because of the idiots that voted emotionally.
Tledon,
You pretty much summed it up. Makes you wonder why some of us devote any time to informing ourselves. It seems our more ignorant brethren going about their happy little lives only pop in once every few years to not only determine policy but actually benefit the most (subprime bailouts, “tax cuts” for not taxpayers), and they say only Wall Street bankers are greedy.
t seems people need reminding every now and then that putting Democrats in charge isn’t such a good idea. The problem is that this one is scary.
As for the 401ks, its all about the money. Democrats are looking for more money to blow on their pet projects. Lets face it, they know that raising taxes will actually decrease government revenue. As Obama put it when reminded of that fact by one of the few reporters who had the balls to actually ask him a tough question it is not about the revenue it’s about “being fair.” Ideology trumps reality!
So, they know their policies won’t raise the money they want in the long run. But there are all those trillions of dollars sitting there ripe for the picking in people’s privtae 401k accounts! All they have to do is grab the money and spend it the way they did the social security accounts.
Taxing 401K’s will be another step of “spreading the wealth around” If you tax millions of people who have the average 401K you can then hand out the money wherever “they”, Pelosi Posse, seem fit to do so. Not a good idea
[...] Democrats Discuss Taking Over People’s 401K’s If you don’t think an Obama, Pelosi, Reid run government would result in a dramatic swing to the left, read US [...] [...]
And I suppose you “more politically informed than the democrats” wanted to vote another republican in office and I am sure you voted for “W” twice. Read the Washington Post or the New York Times or CNN or AP or Wall Street Journal. Watch the news instead of listening to Rush and you might just agree that most republicans are paranoid old thinking people who are afraid of someone who just might get our butts out of this mess and show you that it can and will be done. We put up with W for 8 years, now give us a chance and shut up!
and by the way, what could be more scary than Palin running the show and a president who thinks just like W? Please explain since you are so full of wisdom and I am just ignorant. I would say ignorant is not acknowledging something when it is staring you right in the face. Admit that Republican administration pretty much clipped the world at it’s knees and now expects us to stand by and elect another….now THAT’s IGNORANT!
by the way….lock up your guns because I am sure on day one Obama will be knocking on your door and take it out of your hand (as it he doesn’t have better things to do). You poor stupid, ingnorant, frightened, paranoid old republicans…how ignorant is that!
[...] Security is not the answer and neither is the government. If the government gets their way your pre-tax contribution will be a post-tax contribution. As an investor in your own future you must stop the government from doing this to our [...]
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I can see some people really don’t know what is socialism. Unfortunetaly I have lived all of the and I have read all the books about it and it simply doesn’t work .
I would prefer Palin, the woman knows how to kill her own food that is a Real woman the one that we need.
I disagree with her on many things, but she has better principles and is proud of her country.
My Grandfather left Sweden when he was fourteen years old to come to this country because of Swedish Socialism – he saw there was no future for him there. That allowed my father to live the REAL American Dream; education, working hard to build a business, so you can afford to buy a house. Now politicians forgot the first two things and just want everyone to go right to the “own a home” finale. This is where the graveyard of lofty political ideas gets us, every time.
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