Thread: House Democrats Contemplate Abolishing 401(k) Tax Breaks

http://www.workforce.com/section/00/art ... /83/58.php

House Democrats Contemplate Abolishing 401(k) Tax Breaks
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.
October 16, 2008
House Democrats Contemplate Abolishing 401(k) Tax Breaks
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-California, and Rep. Jim McDermott, D-Washington, 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.

A plan by Teresa Ghilarducci, professor of economic-policy analysis at the New School for Social Research in New York, contains elements that are being considered. She testified last week before Miller’s Education and Labor Committee on her proposal.

At that hearing, the director of the Congressional Budget Office, Peter Orszag, testified that some $2 trillion in retirement savings has been lost over the past 15 months.

Under 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 percent 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 percent 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,â€

This one really made my blood boil. This is what a Democrat controlled Congress will bring us. And if Obama wins, there's no telling how creative they will get in screwing over the "little guy". Democrat controlled Congress PLUS Democratic President spells disaster IMO.

These people really are Communists. First they made 401k values fall 40% with their "Fannie Mae home ownership for the poor" fiasco. Now they want to nationalize the remainder and have the have the government invest and dole it out?

I would rather take my 401k money out and put it in a Swiss bank. Lots of other people would do this also, you would see another 40% drop in the stock market.

Great, lets bail out everything tied in anyway to money, the federal reserve and mega business, but let the freaking people drown.

Its almost as if the money is a person and the people are just trash on the sidewalk.

I never thought I'd see the day that the American flag was an icon of all out communism and fascism but it seems we are really there now.

With the federal reserve controlling the government and now the world finances we are under a new world order government, there is no seperating the two. If there is a giant sunami in Japan, all the world will have to pay to rebuild it. Its called sharing the burden and the wealth and thats what this global bail out is all about, putting everyone in the same boat, and having to pay for things unvolutarily. Instead of letting peoplel do the good work, which is good for ones soul, we now have a world government that will just take everything from us, and it all started with the financial bail out, that was the stake that killed us.

All these people that said it was good and had to be done say, once the bad debt is good, the government will get its money and get out of business, but as we know, once the government gets in something, they never get out, they just control more and more and more until everything is totally crap and the people can't breath, and I for one am sick of it.

We are turning into a land of government serfs really quick, just look what the jobs are paying now, and they think the financial people are going to loan money out to re-start the economy? Yeah right, keep on dreaming. there will be a very select few who make a great life for themselves in this era. One day this criminal enterprise will be stopped, and it'll probably take bloodshed to stop it, but it will be stopped!

It's just another re-direction of money for their socialist programs. They got and spent all the Social Security money and now they are going after 401K's. There shouldn't be any doubt in anybody's mind about the democrats. They are going to TAKE all they can.

IF they pull this off once again the little guy gets screwed.One more step towards the communist american union.Work harder minions the premier Obama and his comrades need your MONEY!




STAND TALL PATRIOTS!!

it's time for the TEA Party ... these crooks will tax and Bleed America to death if they could have their way

They robbed the Social Security Coffers ... now that Americans will not have that they want to take away the 401 tax breaks so you cannot set up a retirement

not No But HE_ _ NO

Originally Posted by Bowman

These people really are Communists. First they made 401k values fall 40% with their "Fannie Mae home ownership for the poor" fiasco. Now they want to nationalize the remainder and have the have the government invest and dole it out?

I would rather take my 401k money out and put it in a Swiss bank. Lots of other people would do this also, you would see another 40% drop in the stock market.

That's exactly what I would do. Get your money out of the country. Millionaires are doing that. The interest rate is lower but at least it would be better off than giving it to the Democrats to "invest". Ya right. They mean CONTROL. Swiss bank for sure. I heard of a guy with $33 million in cash that sent $25 million to Switzerland. Now if the big money guys are doing that, they are doing it for reason.

Originally Posted by gofer

It's just another re-direction of money for their socialist programs. They got and spent all the Social Security money and now they are going after 401K's. There shouldn't be any doubt in anybody's mind about the democrats. They are going to TAKE all they can.

They are feeling so secure that Obama will win they have no fear of even talking about this BEFORE the election. Hold on to your money, your kids (get them out of public school) and protect your second amendment rights.

The government "requiring." We're in for a lot more of this for at least the next 2-4 years with the Democrats in control. In a way I hope they overreach like they did in 1993-94 so they get slapped (like the GOP is about to shortly).