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.â€
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 ...
bttt
Our retirement accounts are about to undergo “change.” Thanks America!!! You done good “electing” these Commie buffoons!!!!
bump
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?
Inter—esting — Art—icle—.
The idea is blatantly Unconstitutional. And the current Supreme Court would probably acknowledge that fact.
So, this is the Change that we have been promised. Funny thing, I don’t remember hearing about it during the campaign.
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.
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!
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?
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.
So, THIS is what Americans have been working for all their lives?
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!
...only by non-Marxist. Wait, you'll be able to connect the red dots even more after the oath is given
I really hate commies.
I'm not sure that "reset" will do it ... may need a hard power down and reboot.
If the democrats target people’s retirement accounts, I predict people will target democrats.
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.
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.
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