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October 30, 2008
Got a 401k?
"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. . . .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."
Oh, goody ... Social Security is now going to be incharge of a 401k that isn't even really yours anymore.
Not only is 15% of your earnings going to Social Security, but they are going to "administer" another 5%. By law.
Ghilarducci outlined her plan last year in a paper for the left-liberal Economic Policy Institute, in which she acknowledges that her plan would amount to a tax increase on workers making more than $75,000--considerably less than the $250,000 Barack Obama has said would be his tax-hike cutoff. In addition, workers would be able to pass on only half of their account balances to their heirs; presumably the government would seize the remaining half. (Under current law, 401(k) balances are fully heritable, although they are subject to the income tax.)
Here again is the underlying Leftist ideology concerning property ... IT BELONGS TO THE STATE. Work hard, be responsible, save, acquire wealth, and when you die the government gets it.
The Democrat troika we may get on Nov 4 is quite naked in its goal of making people so dependent on government they will never dare to cross Leftists again.
Posted by Darleen at October 30, 2008 06:42 AM
Comments
Yeah, I heard that investing in a 401(k) was one of the central planks of Lenin's NEP. You are loonier than usual these days.
Posted by: Josh at October 30, 2008 11:50 AM