Now for something completely different, socializing your 401K

Rush Limbaugh was talking about this today, so I had to check it out.

From Investment News, here.

Congress mulls major 401(k) changes

By Sara Hansard
October 7, 2008, 5:18 PM EST

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.

“We’ve invested $80 billion into subsidizing this activity,” he said, referring to tax breaks allowed for 401(k) contributions and savings.

It goes on to say that a “Congress should let workers trade their 401(k) assets for guaranteed retirement accounts made up of government bonds”.

There are so many things that tick me off about this.  Let’s review them:

“Chief among them was eliminating $80 billion in tax savings for higher-income people enrolled in 401(k) retirement savings plans. ”

To me, that means your 401K won’t be tax deferred any more.  You’ll get taxed on that money as income, taxed on any profits you receive, you may be taxed on any match your employer provides, you’lll get taxed when you receive that money (who knows if you’ll be able to withdraw it early), taxed when you spend that money and you’ll get taxed on any of that money that’s left when you die.  Talk about breaking the back of the American people.

“We’ve invested $80 billion into subsidizing this activity,” he said, referring to tax breaks allowed for 401(k) contributions and savings.

That suggests that this gentleman that money I’m investing is his money and he can’t get his grubby mitts on it and he’s pissed about that.  Look at what he says here:  “We’ve invested $80 billion…”   Wait a minute.  You’ve made no investment.  It’s money I’ve earned.  It’s not your money.  It’s not money you are giving me or investing for me.  It’s MY MONEY.  Until Mr. Obama is elected, I am not required to turn my earnings over to the state and wait for the state to give me back the share they want me to have.

The U.S. tax system is unfair enough, but for this man to imply that because a dollar that hasn’t been taxed is fair game for the government to come after…WHO ARE THESE PEOPLE?

“Congress should let workers trade their 401(k) assets for guaranteed retirement accounts made up of government bonds”.

Let’s read that again…Guaranteed Retirement Accounts… Isn’t that what Social Security started out being?  Look what’s happened to that.  It’s been borrowed from, reallocated, stolen and misused for years!  And now we’re going to set up another, similar program?   Congress refused to consider privatizing Social Security, and now they want to socialize your 401K.

Stand up people.  Be heard.  Vote those out who are not listening.

Refuse to become France.  Stand up before it’s too late.

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Filed under Big Brother, Duct tape zone, Left and Right, Politicians

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