Skip to comments.Clinton Administration 401k Proposed Tax? (vanity)
Posted on 03/18/2013 8:16:28 PM PDT by FreedomPoster
There are any number of places on the web referring to a Clinton Administration-era proposal for a "one-time" (yeah, don't get me started, either) tax on 401(k) assets of 15%. There are plenty of them are here at Free Republic. Boortz does it. The list goes on and on.
What I cannot find is anything really reference-able on the subject. "Boortz said it" or "xyz on Free Republic said it" really just doesn't cut it.
Does anyone here have a real source on this?
Any help on this?
I too have had no luck in sourcing this story however.
That’s nice, but I don’t see how it is helpful on my specific question.
Sounds like some un-sourced rumor that Rush talked about on his show in 1990s,.
Good luck, it doesn’t sound real.
Go here, there are over 8 million hits ...
Not so. I found something here:
Private Nest Eggs Don’t Make Public Safety Nets
“President Clinton installed Alicia H. Munnell, a vociferous advocate of pension taxation, as Assistant Treasury Secretary for Economic Policy. She wants to invest pension funds in public infrastructure and public education to “increase the resources available for future generations.” To achieve her goal, she devised a plan that requires taxpayers to report as taxable income the contributions that they and their employers make to pension plans, along with the earnings on the pension investments known as the “inside buildup.” To make up for not taxing pensions in the past, she wants to confiscate 15% of all pension fund assets.”
Still not a quotable source, but I tend to believe it:
use some of the key words in the article to search
If there is a video archived of it, I watch Dick Gephart on Washington Week (C-Span), during the clinton malaise, explain how the fed should takeover all retirement and 401K accounts for individuals because individual investors can’t manage their funds well enough for their retirement ahead. He was dead serious and even expalined that democrtas had a working plan on how to accomplish it and ‘secure the individual’s money for them’. The short guy with the round head who handles presidential debates sometimes was the C-Span interviewer. I cannot recall his name at this moment.
"However, Munnell seems to have changed her position since 1983. Now an assistant secretary at Treasury and a possible nominee for the Board of Governors of the Federal Reserve Board, she has recently attacked the tax deductibility of pension benefits by proposing as a source of new government revenue a 15 percent tax on all private pension funds.(71) "
71 refers to this (71) "The Ultimate Raid," Wall Street Journal, May 9, 1995, p. A20. See also Donald Lambro, "Risky Clinton Plan for Pension Funds," Washington Times, May 8, 1995, p. A22.
All these years I blamed Laura Tyson.. I could have sworn it was her.
BTW, I did not read all this but it looks to be very close.
Another oft-cited evidence of this is Congressional Committee testimony of Teresa Ghilarducci back in 2008, who wants to replace 401K's with mandated investment in government bonds. She's a "professor of economic-policy analysis at the New School for Social Research in New York". Do a little bit of research on this "university", and it will tell you all you need to know about her.
She claimed that the committee chairmen (Miller and McDermott) wanted to pursue her proposal. But, nothing has come of it. I suspect that cooler heads prevailed among the Democrats. They know what would happen if they tried to make that kind of change to 401K's.
BTW, did you know that McDermott is the only board-certified medical doctor in Congress that is a Democrat? All the others are Republicans. Even more interesting is that he is a psychiatrist -- the only one in Congress.
And he's batshit crazy.
Ah, the irony...
Obama stated it in 2008 before the election.
If they tax me now on my current 401K balance, and then forgive all taxes when the remaining balance is withdrawn in the future, then I might be okay with this?
LOL....like that would ever happen
You can do that now. It’s called Roth IRA. I’ve looked at it, but I do not trust them to keep their end of the bargain. They’ll change the rules later on and begin taxing withdrawals.
One of the old-time rules of accountants is to ALWAYS defer taxes TODAY if you can. You never know what rule changes may occur in the future.
Obama stated it in 2008 before the election....Horse dooky. Jesse Jackson has been floating this idea since MLK was blasted. “Take the private plans, invest it in the government and divide it up between the people who earned it and those who can’t afford it.” It would be like SS; those who actually paid into it only get the dregs from those who didn’t, and then only as long as it lasts.
If they tax you now on your 401K, you won’t have enough to withdraw later when it ain’t worth spit.
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