One more reason to be fearful of a Obama and Democrat sweep…..losing our 401k’s: (h/t QandO Blog)
Powerful House Democrats are eyeing proposals to overhaul the nation’s $3 trillion 401(k) system, including the elimination of most of the $80 billion in annual tax breaks that 401(k) investors receive.
House Education and Labor Committee Chairman George Miller, D-California, and Rep. Jim McDermott, D-Washington, chairman of the House Ways and Means Committee’s Subcommittee on Income Security and Family Support, are looking at redirecting those tax breaks to a new system of guaranteed retirement accounts to which all workers would be obliged to contribute.
~~~A plan by Teresa Ghilarducci, professor of economic-policy analysis at the New School for Social Research in New York, contains elements that are being considered. She testified last week before Miller’s Education and Labor Committee on her proposal. …
Under Ghilarducci’s plan, all workers would receive a $600 annual inflation-adjusted subsidy from the U.S. government but would be required to invest 5 percent of their pay into a guaranteed retirement account administered by the Social Security Administration. The money in turn would be invested in special government bonds that would pay 3 percent a year, adjusted for inflation.
The current system of providing tax breaks on 401(k) contributions and earnings would be eliminated.
Whoa boy. That new system sounds suspiciously like Social Security eh? Even better, employers will no longer be able to write off their matching contributions to a 401k plus you get taxed for your capital gains. So basically this means no employer contributions, no tax benefit, end of 401k’s. What do you get in return?
Six hundred bucks.
“From where I sit that’s just crazy,” said John Belluardo, president of Stewardship Financial Services Inc. in Tarrytown, New York. “A lot of people contribute to their 401(k)s because of the match of the employer,” he said. Belluardo’s firm does not manage assets directly.
Higher-income employers provide matching funds to employee plans so that they can qualify for tax benefits for their own defined-contribution plans, he said.
“If the tax deferral goes away, the employers have no reason to do the matches, which primarily help people in the lower income brackets,” Belluardo said.
This plan would not allow you to touch the money….just like Social Security. And you get the huge investment return of 3% for your trouble.
Just more evidence of the Democrats goal of keeping us all on the government nipple from birth to death.
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Unfortuanately, this will effect almost all of us. Let me get this straight, since Social Security has worked so well, they want to start another plan. Should we call this Social Security II, and can I watch as more american’s get on the monthly tab, thanks to our govt.
Shameless, and every day I lose more and more faith in our country. I mean, how can you not as you watch half of our country vote for Obama. Hope and change, by golly we sure as hell are going to get alot of change, and as for the hope, hell I already have alot of that.
Alex
Wow seems like the Dems/Socialist movement wants to kill white ppl.(Yes, i said it) I’m willing to bet 90% of 401Ks are most likely owned by white ppl.
Regardless of that though this is getting ridiculous. These lunatics really are gonna cripple us financially so we have to do socialism.
They want us poor and desperate enough to depend on them. That is what’s really behind this 401 killing push.
The more I look at it, the more it seems likely a revolution will occur if the dems take the White House, and have a large majority in the Senate and House.
Worse still, if they seize our 401ks in a market like this one, we’ve locked in our loses.
Time to switch to I.R.A.’s, also get your money out of Blue Chip stock mutual funds. C.D.’s and IRA’s will be safest bet for a democratic/socialistic/communistic (yes yes yes im name calling) America.
If mcdermott is involved it will become outright theft.
Yes but look at all the good the left can do with this extra govt income! New branches of ACORN can be started. More illegal aliens can receive free health care for more anchor babies. Fewer and fewer blacks will be forced to work for those white, devil slave masters. And best of all, the Messiahs supporters will be assured of receiving an even greater and quicker return on their investments. Mickey Mouse and the Dallas Cowboys have donated enough, after all.
People need to chill out. There is NO way this is going to happen. Look, I think every American is aware that the Government has royally screwed up Social Security and has essentially abscounded with much of our contributions (i.e., those who have been continually working for a long period of time). That said, I don’t think Amreicans will stand for this. There would be such a huge backlash that Congress would never ever ever pass it.
Finally, CUSTER you may be one of the stupidest people I’ve ever ran into on a message board. Thanks for reinforcing my assertion that the vast majority of Americans have no business discussing politics let alone voicing opinions that are based on zero evidence. 90% of the 401(k)s are owned by white people? What are you, drunk or just retarded? Do you realize that many employers, especially large ones that hire low level entry position (e.g., McDonalds, Wendys, Family Dollar, etc) have 401(k)s and many default people into participation upon hire? Who’s working those positions and how many of those positions are available? Couple that with the fact that professional minorities actually do exist (I swear it’s not a myth) and are just as likely to contribute as white professionals.