Posted on 02/23/2024 9:41:14 AM PST by SeekAndFind
A majority of Americans are living paycheck-to-paycheck. A majority don’t have enough money to pay for a thousand-dollar emergency. Home ownership is a rapidly dissipating aspect of the American dream. Americans’ credit card debt is at a record high because of high inflation and the cost-of-living, and they’re falling behind on debt payments. People don’t have enough money for retirement.
So what is the solution? Well for some economists, it’s time to take away the tax benefit for 401(k) plans because the government is short of revenue to pay for their exorbitant spending.
See here, from USA Today:
What if the government abolished your 401(k)? Economists say accounts aren’t worth it
The federal government should stop allowing pre-tax contributions to retirement savings, abolishing the 401(k) and Individual Retirement Account, two economists from opposing ideological camps argued in a research brief in January.
Allowing people to shelter their retirement money from taxes is a policy that largely favors the well-heeled, they said. Congress could use that money, nearly $200 billion a year in lost tax dollars….
Oh, Congress could use that money? Yeah, well so could we, and we’re the ones who earned it. And $200 billion a year? This is a pittance toward covering the $2 trillion yearly deficit the federal government is running in a supposedly great economy.
Here is a novel thought for economists, politicians, and bureaucrats. Why don’t you guys look at the spending side of the equation instead of always seeking to confiscate more money from the rest of us? Your modus operandi further destroys our purchasing power and ability to save, spend, or invest, and that inevitably slows the economy.
(Excerpt) Read more at americanthinker.com ...
Government must be put on a Budget by Law
Screw the people.
RE: Government must be put on a Budget by Law
Yep, that’s what Switzerland does.
Define “well healed” - people with very modest incomes invest in those to have retirement. “mostly” well healed? Going with total amount invested overall to claim it only benefits the rich, therefore screw over everyone else who would be hurt the most?
Government is the worst violator of the law.
“Economists”
They are not the government and this is not going to happen.
Do you idiots in DC realize there’s another way to reduce the deficit...cut spending?
Well-heeled is the new rich.
That $200 billion would go straight to Ukraine and illegals, and we all know it.
“Do you idiots in DC realize there’s another way to reduce the deficit...cut spending?”
They are not idiots. They know exactly what they’re doing.
A few years ago some Congressman floated the idea of just seizing 401k accounts. His nonsensical argument was because these accounts are tax-deferred, the accounts really belong to the government.
It wouldn’t be outright theft, dontcha know. The account holders would get long-term 2% government bonds in return.
This scheme is obviously illegal. And it went nowhere. But I expect it to be revisited when the federal government finally flies off the deficit cliff.
If money can be created by fiat then they can simply print what the government needs.
“There’s an infinite amount of cash at the Federal Reserve”
Neel Kashkari, Minneapolis Federal Reserve
Right now, 401s are being taxed by inflation at about 12 percent a year (I'd say). Congress has voted to impose the inflation.
Congress is easily getting away with the inflation tax; there is no reason to go on record voting for another tax that might be the straw on the camel.
I got a better plan for Federal Funding.
The States all have to pay a sum of money for all people living within their borders, ILLEGALS OR CITIZENS. Thus, there will be no Representation without Taxation. That money must be generated by the States based upon Census data to cover any shortfall of a Deficit by Congress.
Then all of the sudden the illegal immigration problem and deficit spending problem will evaporate.........
Wrong?
It doesn't cost the city or its politicians a cent. The plan cost the taxpayers of NYC the full cost of the "re-elect-me" giveaway to the illegals.
Now that they have destroyed company retirement pensions, they can move on.
Note that this is also throttling the golden goose. The 401(k) was a way for the FedGov to harness American greed to make the worker manage an investment for the “silent” partner of government. FedGov should get more from invested money, but it has to wait - which may be just too much.
BTW, I would have liked to see a court declare the 401(k) unconstitutional. The dubious 16th Amendment gives Congress the ability to tax incomes. This is NOT the ability to run an investment scheme to try to motivate citizens to earn it more money. Any taxation the FedGov didn’t want to take should be lost to the earner.
I don’t understand why voters keep putting these clowns in office. Clearly, no one holds the politicians responsible or they just don’t care.
Bkmk
easiest way to reduce the country’s debt, devalue the currency
easiest way to devalue the currency, run up inflation
Thanks Joe Biden
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