Like the title says - will the next President veto this Democrat-pushed propsal?
House Democrats contemplate abolishing 401(k) tax breaks - InvestmentNews
Led by Democrats McDermott and Miller, the plan is to seize all 401k accounts and put them into Government Retirement Accounts, and then forcing all US employees to pay a 5% tax into the account (with no mention of employer-matching), which is only going to return 3% over inflation (plus a measly $500 per year) by investing in government bonds instead of businesses.
Welcome to Social Security #2. Now you won't be able to plan your own 401k and have the option for early withdrawal. It's not even an optional program! (Social Security was optional a long time ago too - now look at how the government screwed our retirement "investment.") They want to take another 5% of your paycheck (through a mandatory tax) and put it under government control. The stock market will love the $3 trillion in 401k assets being pulled out of the market and put into government loans! Good luck bringing the NYSE back up to 15,000 any time in the next quarter century if something like this comes through.
Considering my 401k returns have averaged 5-7% over inflation, except for this year, why in the world would I want to "cash out" when the market is at a low? Over the long-term, a 401k in mutual funds/stock market will return WELL over 3% over inflation!
This is a scam that hits the middle class the hardest, for the sake of more government control over the money you work for. Since there is no tax benefit for a 401k over the first $15k per year, the wealthy don't have any more of a benefit than middle class workers.
If Obama's elected, do you think he's going to veto a Democrat-pushed bill such as this? He never says "no" to his own party, and THAT'S what scares me most about him possibly being elected - Democrat-majority House, Senate, and White House - so there's no check & balance for a BAD proposal like this. Maybe this is what Biden was talking about when he said
"there's going to be a crisis within six months, and we're going to do some things you may not like.." So much for a tax cut to 95% of the people in this country when every worker will get a 5% tax increase with this "retirement account" also known as Social Security part 2.
There's no way in hell that McCain lets a proposal like this pass.
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