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Dems Target Private Retirement Accounts
Carolina Journal Online ^ | November 04, 2008 | Karen McMahan

Posted on 11/18/2008 4:45:37 PM PST by Clintonfatigued

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.

Mandating Equality

(Excerpt) Read more at carolinajournal.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: 111th; 401k; bho2008; ira; moneygrab; obamanomics; rothira; shariahfinance
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1 posted on 11/18/2008 4:45:37 PM PST by Clintonfatigued
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To: Clintonfatigued

bttt


2 posted on 11/18/2008 4:46:17 PM PST by pointsal
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To: Clintonfatigued

Our retirement accounts are about to undergo “change.” Thanks America!!! You done good “electing” these Commie buffoons!!!!


3 posted on 11/18/2008 4:46:58 PM PST by FlingWingFlyer (I voted for McCain/Palin so I can look my grandchildren in the eyes when I tell them I'm sorry.)
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To: Clintonfatigued

bump


4 posted on 11/18/2008 4:48:10 PM PST by lowbridge
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To: bamahead; AuntB; cripplecreek; ExTexasRedhead; justiceseeker93; Impy; fieldmarshaldj; neverdem; ...

Given how government manages its other programs, liberal assurances that the SSA Administration would do a better job with private pensions aren’t credible.

That aside, doesn’t the government confiscation of honestly earned, privately-owned assets resemble Marxism?


5 posted on 11/18/2008 4:48:21 PM PST by Clintonfatigued (If Islam conquers the world, the Earth will be at peace because the human race will be killed off.)
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To: Clintonfatigued

Inter—esting — Art—icle—.


6 posted on 11/18/2008 4:50:17 PM PST by Mikey_1962 (Obama: The Affirmative Action President)
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To: Clintonfatigued

The idea is blatantly Unconstitutional. And the current Supreme Court would probably acknowledge that fact.


7 posted on 11/18/2008 4:51:12 PM PST by sourcery (Nothing should ever be considered true beyond reasonable doubt until the MSM officially denies it.)
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To: FlingWingFlyer; jazusamo; pissant; ExTexasRedhead; EternalVigilance; GOP_Raider

So, this is the Change that we have been promised. Funny thing, I don’t remember hearing about it during the campaign.


8 posted on 11/18/2008 4:51:18 PM PST by Clintonfatigued (If Islam conquers the world, the Earth will be at peace because the human race will be killed off.)
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To: Clintonfatigued

This would be a taking.. prevented by the 10th Amendment. Rip..the constitution in shreds.

Yup all those crazy gun nuts buying up ammo for no reason.


9 posted on 11/18/2008 4:51:33 PM PST by y6162 (uot)
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To: FlingWingFlyer

Here, obamadems, please take my 401k and IRA away from me. I don’t deserve it. I just punched the clock each day for forty years and saved it up while others starved in the US.

Now, it is only fair that those who did nothing positive to contribute to the common good should by right confiscate all IRAs and 401ks of the rich working folks.

Let me know where to send the funds!


10 posted on 11/18/2008 4:52:18 PM PST by Memphis Moe
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To: Clintonfatigued

They already seize property if it can generate more tax money, now they will seize retirement accounts, probalby other assets after that.

When is it time to hit the reset button?


11 posted on 11/18/2008 4:52:20 PM PST by TheOgre
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To: FlingWingFlyer

I heard Mark Levin interview this dimwit Professor. She says “Social Security is a good start” but was wailing about the “fees” that the 401(k) administrators charge to the poor people to manage their accounts.

Let’s call this what it is — the government’s plan to bail out Social Security by confiscating the 401(k) in order to pay SS benefits from a now empty “trust fund” and also to be able to reap the salary taxes they are now losing. Eliminate the tax break and no employer will be putting money in a 401(k).

Look for them to come after our IRA’s next.


12 posted on 11/18/2008 4:52:46 PM PST by Right Cal Gal (Abraham Lincoln would have let Berkeley leave the Union without a fight)
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To: Clintonfatigued

So, THIS is what Americans have been working for all their lives?


13 posted on 11/18/2008 4:54:01 PM PST by liberalism is suicide (Communism,fascism-no matter how you slice socialism, its still baloney)
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To: Clintonfatigued

Someone I know well who is a retired federal employee is subject to the SS windfall that goes away 5% for every year worked under SS after 20 years. Once a year SSA is supposed to recalculate the amount of SS with 5% additional per year as the windfall goes away and additional money from working full time.

It was originally recalculated in February, then April, then in July, then in October, and now in December this year. That is one full year they will have to pay backpay going back to January 2008.

SSA cannot even pay entitled benefits and they want to turn 401K’s and IRA’s over to them to handle? Give me a break!


14 posted on 11/18/2008 4:55:33 PM PST by PhiKapMom ( BOOMER SOONER LetsGetThisRight.com RED STATE Oklahoma Republican)
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To: Clintonfatigued
That aside, doesn’t the government confiscation of honestly earned, privately-owned assets resemble Marxism?

...only by non-Marxist. Wait, you'll be able to connect the red dots even more after the oath is given

15 posted on 11/18/2008 4:55:43 PM PST by Doogle (USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated))
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To: Clintonfatigued

I really hate commies.


16 posted on 11/18/2008 4:56:45 PM PST by randomhero97 ("First you want to kill me, now you want to kiss me. Blow!" - Ash)
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To: TheOgre
When is it time to hit the reset button?

I'm not sure that "reset" will do it ... may need a hard power down and reboot.

17 posted on 11/18/2008 4:58:14 PM PST by TheRightGuy (ERROR CODE 018974523: Random Tagline Compiler Failure)
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To: Clintonfatigued

If the democrats target people’s retirement accounts, I predict people will target democrats.


18 posted on 11/18/2008 5:02:07 PM PST by Sig Sauer P220 (Thanks to the robber barons in D.C. and on Wall St. I've been forced to become a minimalist.)
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To: Clintonfatigued

Oy vey!

My 401k lost 25% of it value this year. I get a 40% employer match and beat about 41% in incremental taxes so without any investment returns, I got a $1.40 in my 401k instead of $0.59 in my paycheck. Even if I lost half, I’d be up $0.70 vs. $0.59, a kewl 18.6% ahead.

On top of which I have been averaging more than 9% compounded average return over the past 25 years. (Once this year is factored in that will go way down.) Three more average years, and I’ll be back where I was at the start of this year. This is no time to go wobbly.

Please, Congress, don’t help me. Anyone who wants to voluntarily turn their retirement account over the Social Security Administration should be free to do so. Just include me out.


19 posted on 11/18/2008 5:03:17 PM PST by Lonesome in Massachussets (The Democratic Party strongly supports full civil rights for necro-Americans.)
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To: Clintonfatigued

It looks like retirement may come for me sooner than planned and I’ll just pull the entire thing out now and do what our grandparents did. Put it under the mattress.


20 posted on 11/18/2008 5:04:15 PM PST by Integrityrocks
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