Posted on 11/29/2012 11:20:58 AM PST by Perdogg
One of the earliest fears about tax-favored savings accounts like IRAs and 401(k) plans was that when this pool of savings grew large enough Congress would not be able to resist tapping it to help solve the nation’s debt problems. We’re about to find out if those fears—persistent for decades—have been justified.
Everything including the sacred mortgage deduction is on the table as lawmakers wrestle with the fiscal cliff, a year-end avalanche of scheduled spending cuts and tax increases. With a combined $10 trillion sitting in IRAs and 401(k) plans, retirement accounts make a juicy target. Some of this money has never been taxed, and under current law never will be.
(Excerpt) Read more at business.time.com ...
I bought a house and never benefited from the "sacred mortgage deduction". I suppose if I had bought out of my range it might have been different, but I wonder how many middle class folks actually save anything with it. I would hazard a guess that they are upper-middle-class and/or spending more than would be prudent.
Perhaps that's the idea.
And how many times did the Republicans bring this up before the election?
There is not enough money to give these people their money back. If everyone rushes to cash out, it could be like the 1939 stock market crash.
What? And not be able to use the tax code to reward and punish people? NEVER?
Election Fraud.....Tax hikes.....Redistribution....I would say that WAR is well overdue. How will we know it has begun?
which one plays the man?
Once again, the government has perpetrated a fraud. They told us to save in tax-free accounts. That was to give us the fruits of our labor in our old age, so that we wouldn’t be dependent.
Ah, but the marxists couldn’t let that last. All that money out there and OUT OF THEIR CONTROL!
Will the few remaining productive people protest and keep this from happening?
If 401k accounts are to be frozen, it will probably occur under the pretext of a crisis. But the crisis would have to be a real crisis like a major financial collapse or war. Freezing 401k accunts would likely result in a run by the public on all other accounts including bank accounts, stocks, bonds which would cause a crash and liely a freeze on these accounts as well.
Therefore, if the government is to do something like this, they will need to act suddenly, shut down the internet, censor the media and be ready to impose martial law where needed.
It is more likely that they will try out some very innocous seeming transition to tax deferred treasuries and gradually withdrawal the tax deferred status of 401ks and similar pension plans
Election Fraud...Tax hikes...Redistrubition...Obamacare.
When does the Revolt begin, and how will we know it started?
Obama and his fellow socialists skate off scott free.
pfl
“Might Have to Mess with the 401(k)”
I reject their premise. They don’t “have to.” They created the problem on purpose. They knew they would have a big deficit and would use that a justification for seizing money from people who earned it legally.
Face it folks, we live in a communist dictatorship.
the problem in the USA is NOT a deficiency of taxes, taxation or regulation....
All I know is that it will sound like a xylophone falling down the stairs...
I crack myself up...
I had a great 401(k), but one day on a fishing trip my canoe turned over and....
Eventually Obama will have to dip into your savings accounts when he runs out of money from the “evil rich.”
HA!
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