Posted on 04/22/2012 4:44:53 AM PDT by jimbo123
Uncle Sam, in a desperate attempt to fix its $16 trillion-plus deficit, is leering over Americans’ retirement nest egg as its new bailout fund.
Capitol Hill politicians are assessing tax changes that could let the Internal Revenue Service lay claim to a portion of the $18 trillion sitting in 401(k) accounts and other tax breaks used by middle-class workers, including cutting the mortgage tax deduction.
(Excerpt) Read more at nypost.com ...
The dirty secret is that when people don’t spend their money, it shrinks the money supply and the economy. While money is in a mattress, or in silver and gold in a safety deposit box or buried in your yard, it is as if it doesn’t exist.
If Americans become savers, the economy will collapse further, forcing monetizationn to prevent a depression the likes of which the world has never seen.
But that action will result in hyperinflation the likes of which the world has never seen. Either way, my tag line spells it out succinctly.
Note the FUNDING for this bill includes
• change the treatment of individual retirement account distributions after death, resulting in $4.648 billion from FY 2014 - FY 2022.
The Georgetown Climate Center provides an excellent 18-page section-by-section summary.
Page 16
http://www.georgetownclimate.org/sites/default/files/GCC%20MAP21%20Summary%5B1%5D.pdf
Title III-–Revenue Provisions
This title provides the $10.5 billion needed to fill the gap between the $109 billion total authorization and $97.5 billion available from the HTF. The bill would”
• authorize $3 billion to be transferred from the leaking underground storage tank trust fund (LUST) to the HTF immediately, as well as $683 million of future LUST fund revenues (over 10 years);
• provide for a transfer of $698 million (over 10 years) from the gas guzzler tax from the general fund to the HTF;
• increase penalties for tax delinquency by authorizing the revocation or denial of passports in case of certain unpaid taxes or tax delinquencies, resulting in approximately $743 million (over 10 years);
• prohibit the claiming of cellulosic biofuels credit for certain unprocessed fuels, resulting in approximately $1.6 billion (over 10 years);
• allow the Treasury to levy up to 100 percent of the payment to a Medicare provider to collect unpaid taxes, resulting in approximately $841 million (over 10 years);
• allow the transfer of future import tariffs on automotive products, resulting in $4.52 billion from FY2012-2016;
• change the tax treatment of securities of a controlled corporation that are exchanged for assets as part of certain types of corporate reorganizations, resulting in $244 million (over 10 years);
• enable the internal revenue service to levy a federal employee’s thrift savings account to satisfy tax liabilities, resulting in approximately $25 million (over 10 years); and
• change the treatment of individual retirement account distributions after death, resulting in $4.648 billion from FY 2014 - FY 2022.
MAP-21 Moving Ahead for Progress in the 21st Century Act
http://epw.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=20f89548-8b2e-4498-89f7-c9f4ff22484f
is headed to the House after clearing the Senate last month
This bill has everything they need to confine us to the cities. This bill and the recent EO about infrastructure http://en.wikisource.org/wiki/Executive_Order_13604
and the previous one dated March 15 about cities
http://theintelhub.com/2012/03/21/obama-executive-order-the-takeover-of-municipalities-drowning-in-debt/
Agenda 21
Buy less house than you can afford and choose not to use it as an ATM for toys and vacations you can't afford?
We'll take your money and pay off other people's mortgages.
Saved for your retirement instead of spending every dime you ever made?
We'll tax your savings and if you still have any left, we'll 'means test' Social Security and give you less than someone who made the same amount as you, but was irresponsible.
• change the treatment of individual retirement account distributions after death, resulting in $4.648 billion from FY 2014 - FY 2022.
So.... when do you think they will drop the mask and charade and just say that everything belongs to the federal government?
There are a lot of things he wants do in his second term, when he no longer has to worry about re-election
Brilliant! Transfer more money from the productive to the non-productive sector!
These policies are a time bomb that will eventually explode and destroy the country. Rather than defusing the bomb, however, our spineless leaders are just trying to delay the explosion. But by doing so, they are making the inevitable carnage bigger, and BIGGER AND BIGGER.
We must fundamentally change America...BACK TO THE LAND OF THE FREE AND HOME OF THE BRAVE!
He lost the mandate of heaven quite some time ago. Now is the time for usurpers to do what they will.
If you look at the Federal Reserve Act, I think everything now belongs to the government. Can anyone out there tell me it isn’t so?
You’re right. Your tag line is perfect
You’re right. Your tag line is perfect
You’re right. Your tag line is perfect
When people save, it makes money available for investment in future production. Unfortunately, our federal government has made it non-viable to invest in manufacturing in the US.
Check out the “middle class task force”. In order to “help” middle class Americans retire on more than SS, they want to have them purchase lifetime annuities that kick in at 80. Funded with 401(k) $. Of course, it would have “lower costs” if the Government handled these accounts. And there would have to be new taxes to fund accounts for those without 401(k) plans to make it “fair”. Starting this stuff right now, the preliminary changes are effective July 1.... This summer.
I no longer am involved with I.R.A.s and 401Ks but my wife is and will be 59 1/2 on June 27th, this year. We are considering removing all of it and taking the tax hit (but no penalty) at that time. The “Bush tax cuts” expire at the end of this year and that’s going to be devastating to us so called “rich people”.
“Rich” is defined by liberals as anyone who has a paying job or one who has worked all his/her working life to accumulate money to take them through their old age. To them, it’s only fair to take some of our “vast wealth” and give it to the have nots who have worked not, in their entire lives and in some cases it goes all the way back for several generations.
Babies born in the Lyndon Johnson era, now pushing 50 years old have been on welfare their entire lives and some have children, grand children and even great grand children who are in the same situation. Never worked a day in their lives but now they “deserve” some of mine and my wife’s hard earned and saved money. Screw them, let them starve if they won’t work.
Yeah that should work.
Remove incentives to work and save.
Anybody familiar with the concept of a death spiral?
Or a negative re-enforcing system collapsing?
The single largest block of money on the planet is the $18 trillion sitting in the 401(k) accounts of WORKING Americans. Of course Uncle Sam wants their filthy little mitts on this cash.
As an employee benefits lawyer I can tell you without a single doubt, this is a horrible idea on so many levels.
From an Obama/liberal perspective it’s a win/win - grab an extra $450 billion a year from working Americans and destroy their retirement forcing them to rely on Mother Government for subsistence as they age.
Moneywise, it already does. Render unto Caesar what is Caesar’s.
I haven't had a mortgage in several years but due to out of pocket medical expenses - $16,000 in 2010, $14,000 in 2011, plus my church giving makes it better for me to itemize.
—When people save, it makes money available for investment in future production.—
Yes. But until then it doesn’t exist. And if the government monetizes the debt, and this causes people to spend those “saved” dollars while they still have value, it can cause out of control hyperinflation.
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