Dems Target Private Retirement Accounts

Carolina Journal ^ | November 04, 2008 | Karen McMahan

[Lorianne]

RALEIGH Democrats in the U.S. House have been conducting hearings on proposals to confiscate workers' personal retirement accounts including 401(k)s and IRAs and convert them to accounts managed by the Social Security Administration.

Triggered by the financial crisis the past two months, the hearings reportedly were meant to stem losses incurred by many workers and retirees whose 401(k) and IRA balances have been shrinking rapidly.

The testimony of Teresa Ghilarducci, professor of economic policy analysis at the New School for Social Research in New York, in hearings Oct. 7 drew the most attention and criticism. Testifying for the House Committee on Education and Labor, Ghilarducci proposed that the government eliminate tax breaks for 401(k) and similar retirement accounts, such as IRAs, and confiscate workers retirement plan accounts and convert them to universal Guaranteed Retirement Accounts (GRAs) managed by the Social Security Administration.

Rep. George Miller, D-Calif., chairman of the House Committee on Education and Labor, in prepared remarks for the hearing on The Impact of the Financial Crisis on Workers Retirement Security, blamed Wall Street for the financial crisis and said his committee will strengthen and protect Americans 401(k)s, pensions, and other retirement plans and the Democratic Congress will continue to conduct this much-needed oversight on behalf of the American people.

Currently, 401(k) plans allow Americans to invest pretax money and their employers match up to a defined percentage, which not only increases workers retirement savings but also reduces their annual income tax. The balances are fully inheritable, subject to income tax, meaning workers pass on their wealth to their heirs, unlike Social Security. Even when they leave an employer and go to one that doesn't offer a 401(k) or pension, workers can transfer their balances to a qualified IRA.

[aWolverine]

Old news. The Dhim response is “None of Obama’s advisors are saying this”. No, but the entire Dhim house contingent is.

[rabscuttle385]

Translation: The Socialists in Congress need another fix so they can do more social engineering and stay in power just a little bit longer. The Social Security “trust fund” is insolvent, so they are eyeing your retirement funds instead.

[pillut48]

“You’ll get my 401k when you pry it out of my...”

My husband is going to blow a gasket when he sees this!
Hopefully 99% of Americans with 401ks will too!!

This is just wrong. Which is why the demoncrats want to do it. *sigh*

[steve86]

Every day this is posted at least 6 times.

[goodnesswins]

I think this could mean people with PITCHFORKS really DO march on DC!!!!

[mr_hammer]

Has anyone considered this is a grand plan to pry these accounts from their holder’s hands, drive the value into the tank then zoom to the rescue giving the 401 holders .50 cents on the dollar, maybe less. Then the same gov’t would pass some piece of legislation that would cause the prices to rocket upward.

I don’t know, just thinking allowed.

[Tanniker Smith]

It won't happen. There would be massive uprisings.
Those rich guys who don't mind paying more taxes? They shelter all their money in their IRAs and 401(k)s and other instrumemts.

[Arkinsaw]

Has anyone considered this is a grand plan to pry these accounts from their holder’s hands, drive the value into the tank then zoom to the rescue giving the 401 holders .50 cents on the dollar, maybe less. Then the same gov’t would pass some piece of legislation that would cause the prices to rocket upward.

No, they would like to get hold of this money....shove it into the empty Social Security "lockbox" and then use the money to fund their programs and replace it with more IOU's.

[Safrguns]

>>>Has anyone considered this is a grand plan to pry these accounts from their holder’s hands, drive the value into the tank then zoom to the rescue giving the 401 holders .50 cents on the dollar, maybe less. Then the same gov’t would pass some piece of legislation that would cause the prices to rocket upward.

It’s worse than that... they are doing everything they can to tank the economy alltogether... so they can step in and grow govt even more. Just like they orchestrated the economic crisis to begin with... it was just that... a beginning.

[USMA '71]

Pitchforks my a$$. Folks would be taking something a little more effective I believe.

[Radix]

"Every day this is posted at least 6 times."

I have not seen it in my local newspaper or on the evening TV news yet.

[Ouderkirk]

I can recall democRATS wanting to confiscate the over-funding in pension plans back in the 90’s. I believe that it was Charlie Rangle who tried to advance this concept.

[E. Cartman]

Lock and load.

[goodwithagun]

I will withdraw mine and stuff my mattress first.

[sportutegrl]

Just talking about this is enough to tank the stock market. I can imagine that there are a few among us who are already pulling all of their money out of their 401K’s, taking the tax hit, and buying gold.

[Crystal Cove]

Has it been published anywhere but this Carolina Journal? I sure haven’t seen it anywhere.

[RFEngineer]

When they come for America’s retirement savings, they’ll do it through hyperinflation. This way they can spend now and then just print money to repay later.

[CaribouCrossing]

“Every day this is posted at least 6 times.”

GOOD! It oughta be posted 9 times a day. Let’s try and do better so those who haven’t learned about what the Dems are trying to do with our personal retirement accounts will have a chance to fight it.

[Sig Sauer P220]

And the people will target the democrats. Literally.