Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
First, ZGack, it's a shame people like you don't lose their thread making rights for a day or permanently for posting false and misleading thread titles.
They are contemplating eliminating tax CUTS for 401k plans not freaking 401k plans you....
Second, that will never go through and just for the record, Obama is actually for increasing the tax deductions for retirement plans.
And what is worse about this thread is the amount of people that read his title, didn't actually click on the link then gasped and took it for truth.
All the right-wing has left is fraud and scare tactics. In eight years, they've come closer to destroying the country than the most pessimistic observer would have thought possible from the perspective of 2000. They are crumbling on every front. They are losing on every issue. They offer us as the way forward an over-the-hill non-thinker and a law-breaking, half-brained hockey mom, then draft a tax-delinquent quasi-plumber wannabe as team mascot.
All the right-wing has left is fraud and scare tactics. In eight years, they've come closer to destroying the country than the most pessimistic observer would have thought possible from the perspective of 2000. They are crumbling on every front. They are losing on every issue. They offer us as the way forward an over-the-hill non-thinker and a law-breaking, half-brained hockey mom, then draft a tax-delinquent quasi-plumber wannabe as team mascot.
No thanks, guys...no thanks at all...
Thank you. I concur 100% and I really don't know where the right gets off with all these doom and gloom prophecies about an Obama administration after what we have had to deal with in the past 8 years.
Their team blew it big time, and now all they have are lies to try foment fear.
I'm so sick of our national policies being based upon fear, but it's no wonder when you see how many intellectual mediocrities there are running around on the internet and TV spouting their rubbish.
I'm saddened to know that some of my countrymen are so susceptible to these fears.
I remember being upset at the conspiracy theorist lefty nuts after 9/11. I really never thought that the righty nuts would eclipse them, and how.
This is a repulsive initiative, founded in falsehood.
401K accounts temporarily DEFER taxes which is a minor break but a major incentive to save. Taxes are paid on the contributions and returns on the funds in these accounts when withdrawals are made.
The total lack of integrity to label that deferment a "tax break" to sell diminishing incentive to save proactively is astounding.
Does the proposal propose to eliminate 401K's?
De Jure, No it doesn't.
De Facto? It certainly will spell the end. Eliminating the tax deferred nature of the 401K contributions and earnings will remove any reason to have 401K plans, since that deferment is the foundation of the creation of the vehicle.
The proposal will obviously make 401K account funds indistinguishable from money in a savings account, or brokerage account. Why even bother with establishing the 401K then?
"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."
"John Belluardo, president of Stewardship Financial Services Inc. in Tarrytown, N.Y. "A lot of people contribute to their 401(k)s because of the match of the em-ployer," he said.Mr. Belluardo's firm does not manage assets directly. Higher-income employers provide matching funds to employee plans so that they can qualify for tax benefits for their own defined contribution plans, he said.
"If the tax deferral goes away, the employers have no reason to do the matches, which primarily help people in the lower income brackets," Mr. Belluardo said." (The middle class is the group that will be hit hardest by eliminating 401k tax deductions, since it's capped at $15k a year, the wealthy don't benefit any more than the middle class here.)
"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." (If you actually go look up Ghilarducci's FULL plan, it includes the seizure of all 401k accounts ($3 trillion in invested assets) and puts them into these Government Retirement Accounts. This is Social Security Part 2.)
It's all ok anyway. Because, with the Dems redistribution of wealth plan, I intend to quit my job, retire early, recieve a check in the mail twice a month, and sit on my butt enjoying doing nothing the rest of my life! Where's my free money?
It's all ok anyway. Because, with the Dems redistribution of wealth plan, I intend to quit my job, retire early, recieve a check in the mail twice a month, and sit on my butt enjoying doing nothing the rest of my life! Where's my free money?
Bud
I expect a voucher for unlimited beer and pork rinds, too!
"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."
"John Belluardo, president of Stewardship Financial Services Inc. in Tarrytown, N.Y. "A lot of people contribute to their 401(k)s because of the match of the em-ployer," he said.Mr. Belluardo's firm does not manage assets directly. Higher-income employers provide matching funds to employee plans so that they can qualify for tax benefits for their own defined contribution plans, he said.
"If the tax deferral goes away, the employers have no reason to do the matches, which primarily help people in the lower income brackets," Mr. Belluardo said." (The middle class is the group that will be hit hardest by eliminating 401k tax deductions, since it's capped at $15k a year, the wealthy don't benefit any more than the middle class here.)
"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." (If you actually go look up Ghilarducci's FULL plan, it includes the seizure of all 401k accounts ($3 trillion in invested assets) and puts them into these Government Retirement Accounts. This is Social Security Part 2.)
Yes I read the entire article. And yes it will impact the middle class in a big way if they go through with this. As I understand there are 2 Congressmen that are bowled over by this and want to bring it back for discussion in January.
Besides what you noted, the 401K will change to a mandatory 5% taken from your paycheck. The government will contribute $600 per year and the account will earn 3% per year adjusted for inflation.
All the right-wing has left is fraud and scare tactics. In eight years, they've come closer to destroying the country than the most pessimistic observer would have thought possible from the perspective of 2000. They are crumbling on every front. They are losing on every issue. They offer us as the way forward an over-the-hill non-thinker and a law-breaking, half-brained hockey mom, then draft a tax-delinquent quasi-plumber wannabe as team mascot.
No thanks, guys...no thanks at all...
How is this right wing scare tactics ?
This is being pushed by 2 Democrats.
In case you didn't read the article:
"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. "
"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. "
Our current Social Security system used to be an optional and tax deductible "retirement" system. Over the years, Democrat-majority Congress have stripped away the optional, and thanks to Clinton in the early 90's, also the tax deductible part. Freakin' deja vu with this 401k proposal.. how about you let us manage our own money, because the government sure hasn't proven it can manage Social Security without going bankrupt.
If this goes through, we'll all be paying 11.2% of our income toward Social Security, Government Retirement Accounts, and Medicare. Then we'll be taxed based on our income bracket in addition to this 11.2%. Lovely.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
