Monday, November 03, 2008
Democrats Eye Confiscating 401(k) Plans
The Democrats seek to confiscate your 401k retirement plan and SUBSTITUTE IT WITH A GOVERNMENT PROGRAM. Workforce.Com:
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. ["Redircting"...that sounds a lot like redistributing, as in 'redistributing wealth,' - or at least "redistributing" a significant tax break for the Middle Class. - Drake]
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.
The current system of providing tax breaks on 401(k) contributions and earnings would be eliminated.
“I want to stop the federal subsidy of 401(k)s,” Ghilarducci said in an interview. “401(k)s can continue to exist, but they won’t have the benefit of the subsidy of the tax break.”
“From where I sit that’s just crazy,” said John Belluardo, president of Stewardship Financial Services Inc. in Tarrytown, New York.
“This is a battle between liberalism and conservatism,” said Christopher Van Slyke, a partner in the La Jolla, California, advisory firm Trovena, which manages $400 million. “People are afraid because their accounts are seeing some volatility, so Democrats will seize on the opportunity to attack a program where investors control their own destiny,” he said.
From US News:
This whole deal is similar to what Dems want to do with healthcare— create an alternative government insurance system that fatally weakens its private sector competitors so that in the end Uncle Sam is the last insurer standing.
Wouldn't all this hurt the stock market and the ability of private enterprise to raise capital? You bet, but proponents will try to replace any missing private capital with government "investment" spending.
Liberals can't stop spending. They just can't. They're diseased, like a rabid wild animal.
It's all about eliminating the Middle Class, enlarging the Dependent Class while Elitist Liberals are very well taken care of, thank you very much. This is Liberal and Progressive Marxism in its true form.
Oh, but don't call it Socialism or Marxism, no...The Left will become upset if you do.
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