Posted on 10/09/2008 6:13:51 AM PDT by rellimpank
A wide range of sweeping changes to the 401(k) system were proposed Tuesday at a hearing on how the market crisis has devastated retirement savings plans.
Chief among them was eliminating $80 billion in tax savings for higher-income people enrolled in 401(k) retirement savings plans.
This was suggested by the chairman of the House Committee on Education and Labor.
“With respect to the 401(k), it appears to be a plan that is not really well-devised for the changes in the market,” Rep. George Miller, D-Calif., said.
(Excerpt) Read more at investmentnews.com ...
I still got tubs of Beanie Babies.........
You should have been lazy and unproductive in the first place, and bought a bigger house :)
Replacing the existing tax system with the FairTax is a good place to start. See Hometown America Must Save the Nation for a good place to start.
Next, Real Estate taxes to double, failure to pay = government confiscation.
I get it. If you don't tax or reduce taxes, it's subsidizing??
This bailout scheme has released full fledged socialism.
Mine three.
Why do people need a 401k when they have Socialist Security? It provideds the goverment everything it needs for Democrats. It forces at gunpoint, workers to pay huge sums of their hard-earned money plus an equal amount is taken from their employers throughout life. Should the worker die before retirement age, Democrats win. Should the worker not die and receives the minimal payouts, the worker lives in poverty and the Democrat wins.
Double Bind: Savers on the Hook for Squanderers
http://finance.yahoo.com/expert/article/moneyhappy/113568
“If lots of people don’t save and end up upon retirement being poorer than they would like to be, there will certainly be pressure to impose taxes on working people to more richly fund the retirements of individuals who have not saved,” he says. “You’ll see political pressure for wealth transfer — and if you have saved responsibly, you’ll be paying for people who have not.”
Wilcox argues that savers who are dutifully contributing to their 401(k) plans face a real risk, because they won’t pay taxes on the money until they retire. “It’s easy for me to imagine 10 years from now a political candidate saying, ‘We have all these people with $3 million in their 401(k) plans and we need to impose taxes on those people and shore up Social Security for people who didn’t have access to these 401(k)s,’” he says. “It’s a big fat target for politicians.” (And another disincentive to saving.)
Wanna have our retirement in govermnent bonds?
Fine - reform social security, let us put THAT money in bonds...leave our 401’s alone.
You know how the Lee-Custis Estate became Arlington Cemetery? The union passed a law saying Bobby Lee had to pay his RE taxes in person, and when he mailed in a check instead, they siezed his house.
You know what?
Let’s take Congress members’ damned “retirement” to pay back our accounts....
They only have to serve for PART of their time, and they still get retirement paid by the government.
Screw that. Make them live like the rest of us, and let’s start by demanding that ALL former Congress members give up immediately ANY retirement pay they are getting and current members must start paying into whatever retirement plans that we come up with.
Asses
Just talking about this idea will have a real chilling effect on 401K’s.
Where do 401K’s invest their money? In the stock market.
So another scare that will hurt the market.
Congress has reached the ultimate in incompetence and dishonesty.
You say that I am wrong that congress could be worse?
Congress is worse. If we know about this much, being outsiders, what do you think you would know if you were on the inside and saw all of the graft?
Miller has always been a fool. This is an insane idea.
When we decide to invest in a 401(k) retirement plan, we make a contract with the government. We base that and other long term decisions on the terms of that contract.
Now the Dims are talking about changing that contract after the fact.
Not good. Not wise. Insane.
If you push the rich they will simply move their money outside the country. Years ago I was advised to leave some money outside the US and not bring it back to the US where it would be taxed to death and beyond. It was good advice.
According to the Dems, my wife and I are “rich.”
Funny...I thought being rich would mean having Porsches, and beachfront property...
How could you watch her? She's scary. I thought Barack was possessed but Michelle has the look of demons in her eyes.
USSC said citizens have no vested interest in the tax code, and thus ex post facto changes to tax law are allowed.
Remember?
This is how they save Social Security from the boomers. Many boomers will continue working and put off taking signing up for social security benefits.
I know I'm just a stupid peasant...but wasn't Social Security supposed to be a guaranteed retirement account???
Wanna cause a total run on the financial system and not just bank? Tell the people their 401(k) may be looted. They will stop putting anything into it and take the cash into hand. Many people are seeing loses in their accounts and would prefer simple cash in a safe or rolled into a bank CD.
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