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Thursday, October 23, 2008

House Democrats: Abolish 401k Tax Breaks, Create New Tax

What do Democrats do when they see a system or program that isn't working? They throw more money at it, or recreate the same system under another name, or both.

Social Security (or rather, Socialist Security) has been revealed as the glorified government-mandated ponzi scheme that it is, and the Democrats answer is to create another version of it.

Workforce Management says House Democrats are looking at another plan to tighten the goverment's grip on your life, your retirement, and take a bigger chunk of your paycheck.

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,” Ghilarducci said in an interview. “401(k)s can continue to exist, but they won’t have the benefit of the subsidy of the tax break.”

So the Dems want to take away the tax breaks for 401ks...and tax you yet another 5%???

And this idiotic program would be nothing more than a Social Security spinoff. It's just more of the same government-mandated socialist ineptitude.

The definition of "reform" in the Democrat playbook is ludicrous. Keep doing things that don't work. Come up with new ways to do the same things that don't work. Tax more. It'll all be fine.

We need to end that--now.


Kay Day said...

I just wrote about this and linked. I am so outraged. A potential Democrat-controlled administration threatens everything this country was built on. I am convinced they are attempting to create one group of workers topped off by a group of bureaucrats. Anyway, thanks for posting this.

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