Feds eye retirement-fund tax to cut $16 trillion-plus deficit
http://www.nypost.com/p/news/business/plunder_CrD9s6MElVsEIJj2IVgHuK
Are Democrats Eyeing 401(k)s, IRAs for Tax Hit?
Maybe Obama’s already looking to Argentina for inspiration.
Google “Teresa Ghilarducci” and learn why she’s been called “The Most Dangerous Woman in America.”
This is something that they have been talking about for a years. I didn’t know the part about making the IRA’s non- transferrable upon death as well. Good grief!
The pool of money in 401(k) and IRA accounts is ginormous.
There’s no way the looters in D.C. can avoid thinking and dreaming about such a treasure chest. But they won’t make their grab directly. That would draw too much heat.
Instead, they’ll tack an amendment onto a “mom-and-apple-pie” type of bill, or a Defense appropriations bill, then we’ll wake up one morning with the bill already signed and the trucks backing up to our financial institutions. Or a tax on any and every transaction you can imagine however loosely related to your retirement money.
Either that or Barry gets a 2nd term and just does so via Executive Order. (anyone who objects is an evil “1 percenter”.) I think the eventual plan is to seize all 401K assets and replace them with a “guaranteed Federal pension” for everyone. One that is “fair”.
In addition to the Constitutional and personal liberty problems, which are huge, there is a basic economic problem to these schemes.
Most retirement accounts are not held in cash, they are held in various securities. So you have an account, mostly in stocks, bonds, whatever, that is valued at $100,000. The government comes along and says you owe 15% of its assessed value, or $15,000. Most of us would have to SELL OFF our assets to raise the cash to satisfy the confiscation bill. What happens when EVERYONE tries to simultaneously sell off their portfolios? That’s right class; the price TANKS. But you need to raise $15,000. You wind up selling not 15% of your portfolio of $100,000, your portfolio isn’t worth that any more. You wind up having to sell most, if not all of it.
And the effects of that massive sell off on the economy at large?
A catastrophe. Think nuclear war, without the radiation.
When would people march on Washington? Ever? Over a few percent of required "diversification"? Would people even empty out their accounts and pay taxes and a 10% (or 20 or 50%, got to increase that to keep people from fleeing) penalty?
They'll gradually boil that frog rather than just toss it into an already boiling pot.
I’ve been keeping up with this also. I didn’t know they were considering confiscating it after death. That’s what they do to social security, and they only pay out something like $250 for burial, what can you do with that?
National planning Cyprus-style solution for New Zealand