While everyone is talking about gay boy scouts and birth control, President Obama is planning ways to rob you of your retirement savings.
It has been 1377 days since we have had a budget. That is against the law but no one seems to care. He missed his budget deadline again.
The government is on the hunt for more money to support its spending problem. President Obama wants more “revenue” – “taxes” – so he can make more “investments” as he spreads the wealth around.
You need to be afraid, very afraid!
Americans have $17.5 trillion in savings with 25% of it in IRA’s. It is a future source of revenue for the government if they can get their hands on it.
President Barack Obama’s Fiscal Year 2013 budget plan estimated that retirement tax deductions taken by employers and individuals over the next five years add up to $429 billion in “lost” tax revenue. The government believes your savings is their lost revenue. There is not a thing they won’t tax and it gets worse as their spending grows more out-of-control.
In 2008, Obama first proposed a Guaranteed Retirement Account (GRA) for all, which would require businesses to offer automatic IRA’s. Included would be a mandate to invest 10% in US Treasury bonds which is nothing but another sneaky way of funding the profligate national government.
Obama’s FY 2013 budget plan resuscitates the planned theft of savings with “Secure Choice” and “GRA’s” which would mandate 5% to 6% investment in government-controlled pension funds.
The scheme would go like this. The government would deposit $600 into your GRA and each worker would in turn deposit 5% of each paycheck into the account. In return, the government will magically guarantee a 3% tax-deferred return on these assets from who knows where because you know there will be no lockbox and they will spend the money just as they have with social security.
Anyone refusing to cooperate will suffer additional penalties and taxes on any withdrawal of their savings from retirement funds. They would be mandated into investing a minimum amount in US Treasury debt.
What all this means is the government wants to take over your 401K and run it like social security. They would take control over your savings with the promise that you would receive a paltry monthly pension upon retirement.
The government wants to manage your savings without your having any say while you are saving and then confiscate it after you die.
In summation, Secure Choice Pension and Government Retirement Accounts (GRAs):
- Automatically take away 5% – 6% of your earnings and put it into a pooled GRA.
- Your tax refund checks will be automatically put into the pooled GRA – you won’t see a tax refund check again.
- Your unused vacation pay will convert to income and it will be put into the pooled GRA.
- The funds in your current retirement account will be converted to “longevity annuities,” which wouldn’t make payments until you’re very old.
- Once you die, your uncollected equity becomes the property of the government.
- The guaranteed 3% return won’t keep up with inflation.
This is socialism folks and it is an idea that Obama will not relinquish.
Last year, Obama’s National Commission on Fiscal Responsibility and Reform proposed lowering the cap on the taxable amount workers put into their 401K’s.
Taxing retirement is a way of pilfering your savings. It discourages saving.
The American Society of Pension Professionals and Actuaries was concerned about this and consequently launched a media campaign to educate U.S. employers and workers that the federal government might consider changing the tax benefits of retirement savings accounts. [CNBC]
Three years ago, the Treasury and Labor departments requested public comment on ‘the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams.’ The request for public comment is merely pro forma. Obama appears intent on doing it no matter what the public thinks.
GRA’s will be one more bankrupt system. [Investors]
Europe is suffering under this type of theft. Several countries have taken over private pension funds to pay for government debt in lieu of austerity measures. [CSMonitor]
Will we soon be paying for the government debt with our savings? Does anyone really believe the government won’t come after $17.5 trillion dollars in savings?
People who think Obama’s socialism will only negatively impact the rich are misguided.
This has been in the works since after Obama’s election and even before he was inaugurated.
Between taking away Seniors good heathcare and taking over our retirement funds, the progressives get needed trillions of dollars, kill off white, conservative Seniors and get to tax the heck out of their estates sooner than if they had the healthcare we now enjoy in this country.
And of course they save for their own ends, the years of social security payments to the 36 million seniots who will die a year or two or ten years earlier than before Obamacare.
Works for the progressive elite but not so much for the rest of us.
Yes, he’s going to do it. He will nationalize everything. We will have no freedom. I’m not giving to overreactions. This is the path we are on. I wish the Republican party would stand for a Ronald Reagan type vision.
Unfortunately, a good number of Obama voters don’t have any retirement savings and will think that it’s a wonderful idea that the government rob the 401k’s of the “rich.” After all, the rich only made their money “off the backs of the poor.”
Sad but true. He can do anything he wants apparently.
Just came across this, It is a shame that no one seems to care,everyone try’s so hard to save for there retirement,and to have some government take your savings is not right. Its OK for Obama and his family live high on the hog with our money, and won’t stop until he is out of office. his whole intention is to tear down this country through every means he can, and we all sit back. Obama knows that he has the Hispantic and welfare people behind him, It’s time for an impeachment, but who is to take his place, not Biden he is a egg head. if we don’t wake up, they have robbed the Social Security and medicare program, that we all pay into when we are working, that is mandated to be taken out of our check. Why? if government is going to rob us then we shouldn’t have to be mandates to pay into the system. but the Democrates are fully behind this. so are unions. come on folks, write your legislature, democrates and republicans,Obama will do this under Excutive order, hurry and tell these congress they better not do this.
He won’t stop spending and he will continually run out of money. Everything is a potential government kitty. Half the country loves what he’s doing apparently. Not me obviously.