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.