Feds eye retirement-fund tax to cut $16 trillion-plus deficit Read more: http://www.nypost.com/p/news/business/plunder_CrD9s6MElVsEIJj2IVgHuK#ixzz1sxjpDmM7 Uncle Sam, in a desperate attempt to fix its $16 trillion-plus deficit, is leering over Americans retirement nest egg as its new bailout fund. Capitol Hill politicians are assessing tax changes that could let the Internal Revenue Service lay claim to a portion of the $18 trillion sitting in 401(k) accounts and other tax breaks used by middle-class workers, including cutting the mortgage tax deduction. A commission looking for ways to close the deficit, and, noting the extent of 401(k) tax breaks, recommends an examination of the system as one way to prevent government bankruptcy. Besides 401(k)s, other possibilities include the mortgage-interest deduction on second homes, as well as benefits from employer-provided health insurance, which are untaxed now. Under current 401(k) rules, total employee/employer contributions cant exceed $50,000. In the proposed rule change, employer/employee contributions would be limited to 20 percent of the employees compensation, with a maximum of $20,000, the so-called 20/20 proposal. Another proposal being discussed in Congress says all tax deductions on 401(k)s and IRAs to be replaced with an 18 percent credit. The credit, according to a proposal that has been endorsed by economist William Gale, would be placed directly in a persons retirement account. Unlike the current system, Gale told Congress, workers and firms contributions to employer-based 401(k) accounts would no longer be excluded from income and would be subject to taxation, contributions to IRAs would no longer be tax-deductible and any contributions to a 401(k) plan would be treated as taxable income. In other words, the employee and employer would no longer get a deduction under the Gale plan, they would qualify for a credit. And the credit would increase [government] revenues by about $458 billion, Gale says. Last week a group of retirement industry experts went to Capitol Hill to criticize these proposed changes in retirement-plan rules. These changes could have unintended consequences, warns Lynn Dudley of the American Benefits Council (ABC). Testifying before the House Ways and Means Committee about the proposals, Randolf Hardock, of ABCs board of directors, said, [The idea] could seriously undermine the retirement savings system. Jack VanDerhei, research director of Employee Benefit Research Institute (EBRI), believes either of the two proposed 401(k) changes under review would have a catastrophic effect on the current retirement saving system. The 20/20 plan provisions curtailing non-taxable contributions would freeze out many higher-paid employees from signing up for a 401(k), which could lead some companies, according to critics, to question if plans would still be worth offering employees. Reducing retirement-plan contributions for those at the higher end of the wage scale will inevitably have a bad effect on those in the middle and at the bottom, ABCs Dudley says. Read more: http://www.nypost.com/p/news/business/plunder_CrD9s6MElVsEIJj2IVgHuK#ixzz1sxjyqCGP The ruling class is growing desperate. If the checks stop flowing to the inner city, there will be riots. But, where to find the cash??? Oh, the retirement savings of the productive! That's the ticket! _
Yea...that'll go over fabulously.... so our collectivist overlords will simply decree their "right" to confiscate MORE of the fruits of your personal responsibility. Screw rallies and protests....it's time for an armed coup. (and people wonder why they forever seek to disarm the citizenry)
It could turn out that what Democrats addicted to government spending propose Republican members of the establishment in Washington who are equally addicted to government spending will support. The political leaders of both parties are absolutely terrified to cut spending.
*When you have a surplus you give back to the People (tax cuts)* ~ Bush on trashing Clintons 10 year-plan for 0 deficits
This nation has been utterly destroyed by collectivists in both parties.....who must forever keep up with each other's pandering attempts to buy votes... from a citizenry incrementally conditioned to rely on government for their daily bread. It will end... and it wont be pretty.
Well, Thats one way to make sure no one invests in the stock market.... oh and raising gas prices above 4 bucks a gallon is the other way...
Yes, but this is just the first step. I suspect in the next few years they will completely confiscate all...well, now they basically will be Roth's from everyone and redistribute your retirement funds as they see fit. If you don't know who Teresa Ghilarducci is...look her up.
Why Is Teresa Ghilarducci Considered "The Most Dangerous Woman in America" Teresa Ghilarducci is a 51 year old economist who directs the Schwartz Center for Economic Policy Analysis at the New School in New York. Why was Ghilarducci--who sure looks like a nice person in her picture--labeled the most dangerous woman in America in a recent US News & World Report column? The short answer is that she thinks 401k plans stink and she is not afraid to let the world know. Ghilarducci is the author of a recent book titled: When I'm 64: The Plot Against Pensions and the Plan to Save Them. Ghilarducci uses the book to lay-out the case against the 401k plan and to advocate an alternative which would involve a retirement system run by the government rather than the private sector. Among her criticisms are the following: 401ks are voluntary and not enough people actually participate. Levels of savings for those who do participate are completely inadequate. Mutual fund management fees are excessive and eat away at the savings of 401k participants. Not enough employers make matching contributions to 401ks. 401k plans are highly regressive. In other words, those who benefit most from the system and the tax advantages are higher income earners. Those at the lower end of the income spectrum benefit least. These criticism are well founded and are not entirely novel. What has the industry and certain parts of the media up in arms is Ghilarducci's proposed alternative to the status quo. Ghilarducci advocates mandatory contributions from employers and employees that would total 5% of income. The retirement program would be administered by the government, but the plan assets would remain private property of each employee. The program also calls for the government to guarantee a return of at least 3% over the rate of inflation. and idiots wonder why we think Obama and pals are commies.... WTF???
http://money.usnews.com/money/blogs...ilarducci-the-most-dangerous-woman-in-america Not only is it possible, the asset would off-set the entire National Debt with about 18T$ in 401K Plans. The problem is, as with most Government plans, it would add 40/60T$ to unfunded liabilities, already nearing 120T$.
That's OK...Ubama doesn't need congress. He'll do it on his own. Don't know how, but I'm sure he'll figure out a way.
Ah, the "emergency" Therein lies the impetus for all major usurpations of individual rights and liberty.... the problem with such, is when the "emergency" abates... the rights and liberties they've stolen are never restored.... and the collectivist monstrosity known as "central planning" evolves into what we're suffering through today.
