Posted on 05/04/2010 7:43:39 AM PDT by ConjunctionJunction
In February, the White House released its “Annual Report on the Middle Class” containing new regulations favored by Big Labor including a bailout of critically underfunded union pension plans through “retirement security” options.
The radical solution most favored by Big Labor is the seizure of private 401(k) plans for government disbursement -- which lets them off the hook for their collapsing retirement scheme. And, of course, the Obama administration is eager to accommodate their buddies.
Vice President Joe Biden floated the idea, called “Guaranteed Retirement Accounts” (GRAs), in the February “Middle Class” report.
In conjunction with the report’s release, the Obama administration jointly issued through the Departments of Labor and Treasury a “Request for Information” regarding the “annuitization” of 401(k) plans through “Lifetime Income Options” in the form of a notice to the public of proposed issuance of rules and regulations. (pdf)
House Republican Leader John Boehner (Ohio) and a group of House Republicans are mounting an effort to fight back.
The American people have become painfully aware over the past year that elections sometimes have calamitous consequences. Republicans lack the votes (for now) to reign in the Obama administration’s myriad nationalization plans for everything from health care to the automobile industry.
Now the backdoor bulls-eye is on your 401(k) plan and the trillions of dollars the government would control through seizure, regulation and federal disbursement of mandatory retirement accounts.
Boehner and the group are sounding the alarm, warning bureaucrats to keep their hands off of America’s private retirement plans.
Just when you thought it was safe to come up for air after the government takeover of health care.
The entirety of the House GOP Savings Recovery Group letter outling the issue that was sent last night to the Labor and Treasury secretaries:
The Honorable Hilda L. Solis Secretary U.S. Department of Labor 200 Constitution Avenue, NW Washington, DC 20210
The Honorable Timothy Geithner Secretary U.S. Department of the Treasury 1500 Pennsylvania Avenue, NW Washington, DC 20210
Dear Secretaries Solis and Geithner:
As members of the Republican Savings Solutions Group, we write today to express our strong opposition to any proposal to eliminate or federalize private-sector defined contribution pension plans, such as 401(k)s, or impose burdensome new requirements upon the businesses, large and small, who choose to offer these plans to their employees.
In the Annual Report of the White House Task Force on the Middle Class, Vice President Biden discussed at length the creation of so-called “Guaranteed Retirement Accounts, (GRAs)” which would provide for protection from “inflation and market risk” and potentially “guarantee a specified real return above the rate of inflation” -- presumably at taxpayer expense. In the Report, the Vice President recommended “further study of these issues.”
The Vice President’s comments are troubling, insofar as they come on the heels of testimony before Congress from supporters of GRAs proposing to eliminate the favorable tax treatment currently afforded to 401(k) plans, and instead use those dollars to fund government-invested GRAs into which all employees would be required to contribute a portion of their salary -- again, with a government subsidy. These advocates would, essentially, dismantle the present private-sector 401(k) system, replacing it instead with a government-run investment plan, the size and scope of which remain to be seen. This despite data showing that 90 percent of households have a favorable opinion of the existing 401(k)/IRA system.
In light of these facts, we write today to express our opposition in the strongest terms to any effort to “nationalize” the private 401(k) system, or any proposal that would dismantle or disfavor the private 401(k) system in favor of a government-run retirement security regime.
Similarly, and more recently, the Departments of Labor and Treasury have jointly issued a “Request for Information” regarding the “annuitization” of 401(k) plans through “Lifetime Income Options.” While we appreciate the Departments’ seeking guidance and information from all parties and stakeholders in advance of regulatory activity, we strongly urge that the Departments not proceed with any regulation in this area before they have carefully and thoroughly considered all of the information received.
More specifically, we urge that the Departments take no action to mandate that plan sponsors -- often, small businesses -- include a “lifetime income” or “annuitization” option if they choose to offer a 401(k) plan to their employees, or that beneficiaries take some or all of their retirement savings in such an option. Data shows that 70 percent of Americans oppose the concept of a mandated annuity or government payout of their 401(k) plan. On a more fundamental level, Congress should not be in the business of choosing “winners” and “losers” among retirement security stakeholders. Instead, we urge the Departments to make it easier for employers to include retirement income solutions in their savings plans and to help workers learn more about the value of their retirement savings as a source of retirement income. Finally, to the extent new mandates and bureaucratic red tape from Washington push small employers out of the business of offering these plans to their employees, we would submit such an effort weakens, rather than strengthens retirement security.
We appreciate your consideration of our views in these important matters and stand ready to work with you and the Administration to promote secure and adequate retirement savings for all Americans.
Sincerely,
House Republican Leader John Boehner (R-OH) Rep. John Kline (R-MN) Rep. Dave Camp (R-MI) Rep. Sam Johnson (R-TX) Rep. Dean Heller (R-NV) Rep. Brett Guthrie (R-KY) Rep. Michele Bachmann (R-MN) Rep. Pat Tiberi (R-OH) Rep. Bob Latta (R-OH) Rep. Erik Paulsen (R-MN) Rep. Lynn Jenkins (R-KS) Rep. Ed Royce (R-CA) Rep. Buck McKeon (R-CA)
I really don't think so. Stuff is going to blow up. I guarantee it.
Not there yet but I am trending that way
My arms are NOT digital!
Oh, yeah... As I have taught my son, the NUMBER 1 mode of oppression throughout history is TAXATION! Robin Hood didn't fight the Prince and the Sheriff of Nottingham because there was too much traffic on the forest road!
First the urban cores will burn. Then it will come down to survival issues for the urban masses. If the mobs can find food and shelter inside the greenbelts the violence will peter out; but if they can't, they will target the 'burbs and farms. It won't be Bosnia then, it will be Zimbabwe.
They are still are still “voting” for it but they are too stupid to realize. If you watch TV, if you pay for cable or Sat TV - then you support him.
On TV - the majority of channels are owned by Disney (ABC), Viacom (CBS), CNN (Time Warner), NBC (General Electric scum company) or Fox/Saudia (News Corp- Saudi Arabia -Murdoch). 90% of the channels are owned by these companies including sports channels.
Every month your sat Tv or cable bill sends $3 to 4 to each one of those networks. So if you have TV service - you are supporting Obama. You are supporting news telling people the bomber in NYC was probably a white Tea Party guy.
Every day you turn on your TV - you support Obama.
I'm sorry that you have relatives that voted for the marxist; but all people including our relatives deserve all of this if they voted for marxism. Ignorance is not a defense.
Yup. A couple years back we a hurricane took out the city water here in NoVA. It was only for a couple days, but the run on water was intense-you could see primitive survival instincts switching on. Thank God the stores did not run out of bottled water.
Quite frankly we do not want your money, your 401K, and I want Wall Street to prosper although I never tied my retirement to them. (I am horrible with money, war seemed an easier option than investing)
Whenever people mention the 47% who do not pay federal taxes, it is assumed we are all “free riders” on society. In fact many of us have, and at least in my case will again, pay my fair share in federal taxes. In that 47% are WWII, Korean and Vietnam vets (and some Desert Storm types). You also have many wounded warriors from the war on terror who may temporarily or (unfortunately)permanently will pay no taxes. I am sure if asked all of them would prefer to pay taxes to their current travails. Lest anyone forgets, our vets while in Iraq and Afghanistan also pay no federal taxes on their income. That old man sitting on the porch who worked until he could no longer keep a job, has trouble walking, breathing and just wants to enjoy his grand kids in his closing years, is he a now a free loader after years of paying his taxes?
There is a percentage of our society that are “free riders,” leeches who live off our hard work and want more of their fair share. Many were wearing those Kenyan “Hope and Change” shirts a back in 2008. It is convenient for the Kenyan Regime to lump us all together into the 47% who pay no federal tax. In 2006 12.4% of the population fell in the retirement range, there were around 2 million military retirees in 2008, that is less than 1% of the population. Some of those fall into the 12.4% others do not because military can retire as early as age 38. In 2007 12% of the population was considered severely disabled. Not including retired vets under the age of 65, that 47% is easily cut to 23% or less of the population who could qualify as “free riders”, living off the government. (annual growth of retirement population is .09%) There may be other reasons why people are not paying federal taxes. These numbers were quickly obtained, but it is obvious why the Kenyan wants to lump all these groups into one, it provides cover for his largest constituency, the “free riders” in this country.
When people on this site criticize those 47% who pay no federal taxes, they are lumping allot of good honest hardworking or severely disabled people in with the leeches in this country. Again, this is not directed at you, just gave me a chance to vent.
Your 401K is invested in steel, copper and lead?
Yes, they did and they also seized all the safety deposit boxes, too. I just read a book (SURVIVING THE ECONOMIC COLLAPSE) written by Fernando Ferfal Aguirre. He writes about what he experienced and learned to cope with when the economy in Argentina collapsed in 2001 (still in bad shape). The book is an excellent resource full of practical, real life advice in dealing with a totalitarian government.
I'd say more like 30%. These are the hard core leftists. They never sway, no matter what, because their life line depends on it. They've never worked an honest day in their lives, yet everything is paid for via tax dollars. That includes endowment for the arts as well as once a month regular support checks. Their minds are completely welded closed.
Anyone have a recommendation on public companies that produce lamp posts and rope?
I was responding to the comment that before they steal your money, they will disarm you.
I was saying....no they won’t!
The reality is that we might as well accept it
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Uh no, the reality is take it out, pay the penalty and don’t accept it.
Good points. RAT bastard socialist demoRAT pigs! The only thing they do is look for more ways to bankrupt & destroy our country. We need American Revolution II to throw these pigs out & into prison or to the gallows for high crimes & treason against the U.S.
This is what we call “Fascism”....
If this happens, you realize that the next step is seizure of IRAs, and then your stock portfolio, don’t you?
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