Raiding 401(k)s should not be the solution for sourcing tax cuts

NY Post ^ | October 28, 2017 | Jonathon Trugman

[Oshkalaboomboom]

It’s time to start paying attention, America.

Once again, there is a big problem brewing on Capitol Hill, where some politicians still don’t have their priorities straight.

The pols are under the disconcerting delusion that raiding workers’ 401(k) plans is a way for them to “pay” for the tax cuts they will grudgingly give us.

They would rather reach into your pocket and jeopardize your retirement than make common-sense adjustments elsewhere.

They want to change the only well-functioning retirement self-savings plans, which would be a disaster for the American family, the economy and the stock market.

Let’s start with the basics. Saving for retirement is just about the only way to make sure you don’t spend your golden years living in squalor. After the stagnant wage and unemployment picture of the last decade, we need to encourage more people to save more, not less.

Ask a retired person how they would fare on just $1,369 per month from Social Security.

Due entirely to Washington’s mismanagement of the trillions they’ve collected, Social Security is expected to run out of money in just over 15 years, anyway.

Every working American pays 6.2 percent of his or her paycheck, and employer’s match an additional 6.2 percent, to Uncle Sam for their entire working life. And they are still going broke.

What pols should do is expand 401(k) deductions in order to bail out Social Security.

I cannot comprehend why the Washington half-wits can’t just do a simple tax cut and walk away.

Just cut every tax rate by 5 percent, and let the paychecks rise, let businesses find America a more appealing place to do business, and bask in the glory of growth.

[Oshkalaboomboom]

Anything the feds touch, they break.

Remember when the GOP used to be the party of balanced budgets and cutting spending? Paul Ryan's penny plan? Thanks to Donald J. Trump we now know that their calls for spending cuts and balanced budgets were as false as the ones they made for repealing Obamacare. Nothing but lies designed to fool their constituents into believing they were somehow different from the Democrats. Thank you, DJT, for exposing them.

[SunkenCiv]

Revenue neutral means CUT SPENDING, a-holes. Thanks Oshkalaboomboom.

[blackdog]

That which the government gives, provides also that they may taketh away. Along with 40 years of your hard earned contributions.

[blackdog]

A lifetime of frugality in order to provide for my own retirement meant old used cars, no vacations, used furniture, hand me down kids clothes, cooking at home instead of restaurants, etc....

Chump.

[snoringbear]

Many employers have terminated their traditional pension plans and have turned to 401K matching fund programs, many non-Union shops also offer profit sharing programs that are tax deferred as well. These programs, if folks will utilize them and not touch them during their working years will provide a nice chunk of money for their retirement years. There’s plenty of waste that can be fleshed out if congress would find the courage to do it.

[dsc]

Didn’t say what they want to do, or even who “they” are.

[SkyPilot]

Wait until the next real financial crisis.

You don't think the Federal government, in times of incredible desperation, is going to leave 401Ks and IRAs alone, do you?

From American Thinker:

The Feds Want Your Retirement Accounts

http://www.survivopedia.com/could-the-government-seize-your-401k-or-ira-money/

There is already a precedent. During the financial stand offs in 2012 and 2013, when they could not pass a budget, much less a Continuing Resolution, the Treasury said they were forced to take "extraordinary measures" to fund the government, and dipped into the Thrift Savings Accounts of Federal retirees and employees.

If people don't believe the government can take IRAs and 401Ks, they are dreaming. They can squawk "no legal standing" all they want. If things get bad enough in a "Crisis", watch out.

[Soul of the South]

“There’s plenty of waste that can be fleshed out if congress would find the courage to do it.”

Courage? Congress abandoned fiscal responsibility decades ago. The American people are addicted to government transfer payments, subsidies, tax preferences, and spending programs. Runaway government spending and money printing will continue until the dollar collapses and we have hyperinflation.

[Salgak]

. . .and when the word gets out of the impending raid, people will raid their 401Ks and IRA in the single largest liquidation of assets in history.

And it will make 1929 look like chump change, afterwards. . .

[trebb]

Remember when the GOP used to be the party of balanced budgets and cutting spending? Paul Ryan's penny plan? Thanks to Donald J. Trump we now know that their calls for spending cuts and balanced budgets were as false as the ones they made for repealing Obamacare. Nothing but lies designed to fool their constituents into believing they were somehow different from the Democrats. Thank you, DJT, for exposing them.

Yep - that's the main reason they hate Trump - he deals in keeping promises and not spinning excuses. Had to bite my tongue when Ryan said they weren't elected to defend Trump....he seems to ignore that they aren't doing any of the things they promised in order to get elected....

[grania]

The auther writes:I can't understand why Washington half-wits can't just do a simple tax cut and walk away

DC Swampthings are incapable of tax reform that doesn't benefit them and their deep-pocket donors.

[BigpapaBo]

Hell, I already did...
There have been rumors of this for years. If they are talking about it, they are going to do it.

They= DC swamp monsters.

[Jimmy Valentine's brother]

What you wrote.

[Dixie Yooper]

big problem brewing on Capitol Hill, where some politicians still don’t have their priorities straight

And that's as close as this story gets to saying who even said that? I remember listening to Nancy Pelosi talk about it during a press love-in(conference) 5 years ago. Second crappy article of the day without a source.

[MustKnowHistory]

“A lifetime of frugality in order to provide for my own retirement meant old used cars, no vacations, used furniture, hand me down kids clothes, cooking at home instead of restaurants, etc....
“

Amen. We did without a lot of things but we always saved for retirement. Were we stupid or what.

[Mr. Jeeves]

Just cut every tax rate by 5 percent, and let the paychecks rise, let businesses find America a more appealing place to do business, and bask in the glory of growth.

That would push the start of the Eternal Socialist Utopia further into the future - an outcome totally unacceptable to every single Democrat and not a few Republicans.

They were so close with Obama - they aren’t going to let this Trump creep ruin it all. :)

[SkyPilot]

I agree. And that will be even more of an incentive for the government to justify their seizure. They will have to “take control in order to stabilize” things. Never let a good crisis go to waste. Trump won’t be for this, I suppose. But he may be talked into it, especially if things get particularly bad. Congress sure will be for it, especially in a crisis. Moreover, the US owes over 20% of the world’s debt, and over half of that debt is owed to other nations or entities outside the US. In a meltdown, no one will be “reasonable.”

[redgolum]

Many years ago, when I had my first 401K, my late grandfather sat me down and chewed me out.

He said that any money in a 401K was actually “government” money, and that they “would come take it back” once the pot was big enough.

He grew up in WWI, married in the 20’s, and raised a family in the Depression and WWII. He had a very healthy distrust of government.

I should have listened.

[redgolum]

A very effective way to destroy Trump. A massive tax hike would turn his base against him.

Let’s see if Trump takes the bait. He is working very hard to pay off K street, and seems rather blind to the consequences.

[snoringbear]

““There’s plenty of waste that can be fleshed out if congress would find the courage to do it.”

Courage? Congress abandoned fiscal responsibility decades ago. The American people are addicted to government transfer payments, subsidies, tax preferences, and spending programs. Runaway government spending and money printing will continue until the dollar collapses and we have hyperinflation.”

Sadly, I agree. Kinda like an alcoholic or drug addict; gotta hit rock bottom before they’re willing to accept there’s problem and start the long road back to health. Greece is frequently used as an example of what our future will be like. Unfortunately, our situation will be much more dire then Greece. Greece has the EU and more specifically the guilt ridden Germans to keep pumping free money into their economy to keep them afloat. We have no such benefactors to come to our rescue. We will be on our own...