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 ...
This is a rather strange ploy with retirement accounts. I’m sure that more people will be making $120,000 or whatever it is to get a tax increase, if they can’t deduct IRA contributions. I guess if we go to National Health Insurance we will lose that deduction to for incidental purchases like Tylenol (something conservatives may need plenty of over the next 4 years).
Congress needs our retirement accounts to give to autoworkers.
Now that's pithy and true.
We’re screwed.
Dang, I would have thought with the market tanking they would have tabled this idea...damn the torpedos, full speed ahead I guess...
CastrObama is about to make this Cuba.
Pray for W, SaraCuda and Our Troops
yes but the democrat congress can increase the size of the supreme court to say 15 so obama can select 6 more and guarantee, yes guarantee that no sensible court likethe present one can overturn his agenda.
welcome to the way liberals work.
America, the land of the truly stupid.
O you shut the ———— up
;)
As someone else stated on another thread, maybe they’re trying to scare us all into removing our money from our 401(k) accounts and paying the taxes now.
I told someone about it and they said I was crazy. They aren’t allowed to do that and noone would let them.....
Sure!
Any news on obamas promise to let us draw out 10k or 5%?
I want to swipe that out before he takes it. Although, it is hard to withdraw from mine without a reason. AND, what happens if you have a loan out on your 401K? Will they make you pay it to the government? How does that work?
Go right ahead. Try to take them. Watch and see the biggest shutdown of the US government in history as the entire country takes time off to go to Washington to personally offer Congress an attitude adjustment. There’ll be no working for how long?
I’ve already reduce my 401k contribution to a minimum.
Actually the teacher pension plan in MO is very strong and is actually managed by a private entity. We are trying to prevent the state legislature from getting their hands on it for general use.
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