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It was a bad idea when the Clinton administration floated this trial balloon; it was no better when it happened under Bush; it stunk out loud when Obama suggested it, and it reeks today, just like it has for the past 30 years.
Here's the key: The people who finance the campaigns for both the Dems and the GOP (the dreaded "Wall Street banksters") aren't going to let this happen. They want the 401K money flowing in, but don't want the enforcement headache that would go along with withholding.
So it's not going to happen, because if it does, Wall Street will make certain that the opponent of whoever is responsible for it is going to have an immense financial advantage during the next election cycle.
Which is the same reason every other administration gave up so quickly on the idea when it came up.
That inevitable phone call from Wall Street to the White House ("Hey, Mr. President...fuggeddaboudit!") has a way of filling the most hopeful of trial balloons full of holes.
They are not paying taxes on their 401k contribution until they pull the money out... taxpayers need the money now, not later... I am sure they won't mind helping out in the rare times they want to... responsibility means it's someone else's fault in their vocabulary...
So there's a way I can keep working and pay no state or federal taxes out of my paycheck? Please advise me if you've figured out how to do it.
One idea quietly being discussed would be taxing the money that workers place into their 401(k) savings plans up front: an idea that would raise billions of dollars in the short-term and is pulled from the Camp plan. This policy idea is widely disliked by budget hawks, who consider it a gimmick; the financial services industry that handles retirement savings; and nonprofits that try to encourage Americans to save.
I really hope his is a non-starter. People need more encouragement to save for their own retirement not less.
Well there's a shocker. Watch for the next thing; changing 401K or IRA withdrawals from regular income to a more highly taxed category. Fit's with Trump's viewpoint as far as I can tell, meets my expectations. Surely no Trump supporter is surprised by this? What you guys voted for, right?
They are not paying taxes on their 401k contribution until they pull the money out... taxpayers need the money now, not later... I am sure they won't mind helping out in the rare times they want to... responsibility means it's someone else's fault in their vocabulary...
Sounds awfully like the loser sibling that always asks mom and dad for money cause they need it now. And just like that loser they will always need the money now and forever. Minus well just tax it going in and tax it again going out. Heck the gov't should just confiscate everything that we don't spend and put us all on welfare in retirement. That's the general trajectory this country is heading anyway and more and more people are supporting the free everything ideology. What's the latest stat something like 80% live paycheck to paycheck.
Never. Not in 30 years of employment with, oh, 7 employers or so..
In FACT, my first employer had a profit sharing component in addition to the matching component 401K that was sweet. It went like this:
For line employees- salary factor of 1.5%X
For managers and AVP's- 2%X
For VP's and IT tech- 2.5%X
Sr. Management- 3%X
THEN
Multiply by # years service
THEN
Multiply by profit sharing factor.
So I started 2X and went to 2.5X..
For math's sake- $50,000 x 2.5% multiplier= $1,250
Years of Service- 5X = $6,250
X Profit multiplier - 3.25 = $20,312
So in some years I would have $20-30K dropped into my 401K for my 'bonus'. It was sweet. I worked there for 10 years because of that. It fattened my 401K between the ages of 20-30.
Your anecdotes don't match the majority of peoples experiences.
you do realize that this would also effect non liberals? So you'd be happy with less $$$ to finance tax cuts for billionaires as long as it punishes liberals too?
seems rational for a Trumpster....
You have to understand brain dead Trump fans/talk radio listeners.
Anything that they think is "bad"="liberal" or "Democrat"
Anything they think is "good" is Conservative.
You're dealing with simpletons, many of whom have been listening to Rush Limbaugh for 20+ years and think he's brilliant.
Your anecdotes don't match the majority of peoples experiences.
Actually the link I provided certainly shows that a sub 1% match is outside of normal. A poster made some assertion that 'ordinary folks don't get a 1:1 match. That was false as far as industry standards go.
I only cited the one employer that I had that went beyond matching 401K's into profit sharing. Yes- it was exceptional and I am much better financially for it.
This is a spectacularly bad idea. Taxing 401(k)s when they're cashed out means the tax revenue benefits from the accounts' accrued investment income. Short-term thinking - giving up more money later for a little money now, and that is supposed to be the party of fiscal responsibility?
Well, you got what you voted for. The tax cuts to the rich and the corporations will start tinkling down any minute now.
Like I don't now....haven't qualified for the Roth in 20 years which is okay by me given the tax implications.
This would be a terrible idea. Pensions are all but dead so 401ks are a great way to get people to invest in their retirement without too much thinking.
Exactly. Why would the employee want to pay up-front taxes at a higher rate?
I just want to see what the Trump supporters think.
I'm a true conservative and I don't mind revenue increasing and expenditures cut but I don't want to take the biggest hit and it usually is that way. I think I'm upper middle class (everyone seems to have a different criteria of what that is) and I find that any tax plan always seems to give the less to the middle class (lower and upper) and take the most from the middle class (lower and upper). It just does. And the middle class peddles faster and faster and we stay in the same spot. Yeah it's not a bad spot. We do okay -- but I'm sick of entitlement programs for the rich AND yeah even some for the poor.
I fear Trump and his friends will make sure that significant changes to tax reform improve their bottom line and that they will throw a few bones at the poor and stick us with it in the middle.
Oh I sound like I feel sorry for my self -- a little pathetic -- lol. This isn't something that consumes me -- just --if we are talking tax stuff -- lol.
Just work harder. The more money you make the more taxes you pay!
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