Socialist Democrats Running the Show: Proposed Abolition of 401(k) Tax Break

 

The Democrat Party may attack peoples 401 k investments in favor of a compulsory pension plan administered by the bankrupt, insolvent, Social Security Administration.  All the volatility on Wall Street has given the democrats a chance to exploit that volatility to being nationalizing retirement funds and forcing self administered retirement savings out of business.  As buzzards circle a carcass in the desert so the Democrats are circling over the financial turmoil to seize wealth and remake the financial system according to their ideological strictures.  Once again the Nanny State Democrats will penalize the people who saved and did it right to create a terrible program for everyone.  Even in a full blown depression I would rather have control of my retirement funds and keep the bankrupt Ssocial Security Administration out of my affairs.  Consider the following excerpts from the Investment News: http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20081012/REG/310139971&template=printart

 

Powerful House Democrats are eyeing proposals to overhaul the nation’s $3 trillion 401(k) system, including the elimination of most of the $80 billion in annual tax breaks that 401(k) investors receive.

House Education and Labor Committee Chairman George Miller, D-Calif., and Rep. Jim McDermott, D-Wash., chairman of the House Ways and Means Committee’s Subcommittee on Income Security and Family Support, are looking at redirecting those tax breaks to a new system of guaranteed retirement accounts to which all workers would be obliged to contribute

 

Under Ms. Ghilarducci’s plan, all workers would receive a $600 annual inflation-adjusted subsidy from the U.S. government but would be required to invest 5% of their pay into a guaranteed retirement account administered by the Social Security Administration. The money in turn would be invested in special government bonds that would pay 3% a year, adjusted for inflation.

The current system of providing tax breaks on 401(k) contributions and earnings would be eliminated.

“I want to stop the federal subsidy of 401(k)s,” Ms. Ghilarducci said in an interview. “401(k)s can continue to exist, but they won’t have the benefit of the subsidy of the tax break.”

Under the current 401(k) system, investors are charged relatively high retail fees, Ms. Ghilarducci said.

“I want to spend our nation’s dollar for retirement security better. Everybody would now be covered” if the plan were adopted, Ms. Ghilarducci said.

 

It would seem that we’re returning to the bad old days of elaborate structures to keep the government from confiscatory orgies of taxation in which people have to fight for any tax shelters they can find.  I have sufficient faith in the fundamental corruption of the Democrat Party to believe that they’ll always have loopholes, for those in the know, to shelter money from their insatiable appetite for your money.  Government has become the adversary of success and if you want to get ahead and have a life you’ll have to evade the Obama/ Pelosi/ Reid Politburo.   Consider the following excerpts from an outstanding article at Forbs.com: http://www.forbes.com/2008/10/24/barack-obama-law-ent-law-cx_rb_1023robertbovarnickobama_print.html

 

In certain unscripted moments, Obama has given us a glimpse of his somewhat socialist leanings.

Couple that with the recent pronouncement of House Speaker Nancy Pelosi, who has pushed to implement a $300 billion stimulus package–on top of the $700 billion financial rescue package and the $800 billion of additional proposed spending under an Obama presidency–and you can see where we are headed.

I would encourage you to click on the above link for an outstanding story but I’ll give you some of the highlights: Obama will eliminate the statute of limitations on discrimination suits further miring the United States in litigation and class warfare that we can ill afford. He’s going to hit small businesses with massive new taxes, a “global poverty initiative” that will function like a UN payroll tax on Americans, Regulation of the Internet and more.  There are 10 area’s where the author of the article, a Philadelphia Lawyer, figures Obama will well and truly screw up the country.  We’re talking fundamental changes that will be our undoing in the end.

If the changes the Democrats are talking about are enacted in mass; our American Experiment will be over because we’ll be France.  Further, I suspect that Obama will embrace the new push for global financial regulation and institutions that will be disastrous for the American economy for the foreseeable future.  It should prove interesting to watch the stock market contemplate an Obama Presidency in the days to come because I have doubts that we can survive the credible threat of his winning to say nothing of enacting his ambitious social agenda.

We’re already in deep financial trouble that’s likely to last years but if we elect a real socialist to empower trial lawyers, hate crimes, UN taxes, and national health care we’re finished as a country.  Government under Obama will simply take over everything and reward those who blindly go along with the program and sanction those with any initiative at all.  The worst of all is that it seems that we’re ready to vote in this Orwellian world on November 4th.  We’re poised, as a nation, to make the biggest mistake of our national lives and the cost in blood and treasure is likely to be enormous.   

Check out the above articles: they’re well worth the time.  The Government is not supposed to be our master in this country but it seems that too many of us have forgotten.  Its going to make for a somber thanksgiving as we mark the passing of our greatest traditions of the American Spirit and the American System with barely a whimper.  God help us and God help the United States of America.

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2 responses to “Socialist Democrats Running the Show: Proposed Abolition of 401(k) Tax Break

  1. A presentation at a committee hearing is not even close to legislation. By harping on this the Republicans, and stooges are trying to scare people.

    But the idea that investment advisers would lose their money maker no doubt scares them. Try to look at who is sounding the alarm. People who make money on others money.

    Most likely the tax breaks on 401k and 401b plans would continue, but the government might offer another, secure alternative. Thus forcing private advisers to compete with public run fund. That is why all the accountants et. al. are going nuts. They know most would avoid there greedy raiding of other peoples hard earned cash, and they would have to actually work for a living. I know I was one of them.

  2. No super majority, thank God! It’s filibuster time!

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