Posted by Tina
A look at what the Democrat Congress might have in mind if given unchecked power this November is revealed in a proposal offered today regarding your 401K. Progressives dont consider the money you earn and save as your propertyit ALL belongs to them ! YOU should feel priviledged to turn it over to them as a contribution and be happy with the crumbs they toss back (under the table where the dogs eat, natch).
Congress mulls major 401(k) changes, By Sara Hansard
* A wide range of sweeping changes to the 401(k) system were proposed Tuesday at a hearing on how the market crisis has devastated retirement savings plans. *** Chief among them was eliminating $80 billion in tax savings for higher-income people enrolled in 401(k) retirement savings plans. *** This was suggested by the chairman of the House Committee on Education and Labor. *** With respect to the 401(k), it appears to be a plan that is not really well-devised for the changes in the market, Rep. George Miller, D-Calif., said. *** Weve invested $80 billion into subsidizing this activity, he said, referring to tax breaks allowed for 401(k) contributions and savings. *** With savings rates going down, what do we have to start to think about in Congress of whether or not we want to continue and invest that $80 billion for a policy that is not generating what we say it should? Mr. Miller said. *** Congress should let workers trade their 401(k) assets for guaranteed retirement accounts made up of government bonds, suggested Teresa Ghilarducci, an economics professor at The New School for Social Research in New York. *** When workers collected Social Security, the guaranteed retirement account would pay an inflation-adjusted annuity under her plan. *** The way the government now encourages 401(k) plans is to spend $80 billion in tax breaks, which goes to the highest-income earners, Ms. Ghilarducci said.
That simply results in transferring money from taxed savings accounts to untaxed accounts, she said. *** If we implement automatic [individual retirement accounts] or if we expand the 401(k) system, all were doing is adding to this inefficiency, Ms. Ghilarducci said. *
Note to the public: The taxes are deferred not eliminated as the language suggests. The money is taxed as income when it is taken out of the 401K
NOTE TO CONGRESS…IT’S NOT YOUR MONEY!