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To: reaganaut1

This really should not be a surprise. The American Welfare State (aka Socialism) is at the point where it can’t easily squeeze more income out of the population so it has to find some other pot of money to feed its social spending. So it will start taking savings. It has happened in a lot of other countries and Obama is trying to make it happen here too. 401Ks will be next.


2 posted on 01/26/2015 7:37:44 AM PST by Opinionated Blowhard ("When the people find they can vote themselves money, that will herald the end of the republic.")
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To: Opinionated Blowhard

Google “Teresa Ghilarducci”. She’s been out there plugging this idea for at least ten years.


5 posted on 01/26/2015 7:41:55 AM PST by Buckeye McFrog
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To: Opinionated Blowhard

Well, it only puts the inevitable bankruptcy of the welfare system off a few years. Eventually there will be no more real wealth to tap. The music stops and there’ll be a rush for too few chairs.


6 posted on 01/26/2015 7:42:04 AM PST by 556x45
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To: Opinionated Blowhard
The American Welfare State (aka Socialism) is at the point where it can’t easily squeeze more income out of the population so it has to find some other pot of money to feed its social spending. So it will start taking savings.

The ultimate wet dream is a direct wealth tax, but that would create howls of protest. Indirect taxes can accomplish much of that, but only slowly. So, we have the inflation tax (does anyone believe inflation is really under 2%, and even if it is, bond interest after taxes and inflation is negative). Another route is to mess with tax shelters that exist under law--restrict IRA distributions, increase penalties, go after 529 plans. That's the current tack that's being taken.

Another way to do it is by restricting retirement savings options--such as the myIRA family of plans, or the idea floated around to force IRAs and pensions to invest only in "safe" government bonds so the plans wouldn't be subject to market fluctuations (or the possibility of private growth, either).

21 posted on 01/26/2015 8:10:56 AM PST by Pearls Before Swine
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