In a grand scheme of outright theft, the government is considering taxing your 401K and IRA savings. They see trillions of dollars they could steal which are just sitting in your retirement savings. They want to use it to close the deficit instead of cutting back.
It would prove devastating to savings in this country. It is the approach they are using in Socialist Europe. Ireland has already done it and they are talking about doing it in The Netherlands, to name just two.
Changes in the tax assessments being discussed could lead to, not only an attack on retirement savings, but also a cut in the mortgage interest deduction on second homes, one of the more important deductions the average American home investor has. Primary homes will be next and many young families rely on getting this money back to pay their mortgages, especially in these poor economic times. This will severely hurt investment in the housing market and it won’t end there.
This government will not stop spending and will not cut so they will come return to the trough without end.
NY Post: …Testifying before the House Ways and Means Committee about the proposals, Randolf Hardock, of ABC’s board of directors, said, “[The idea] could seriously undermine the retirement savings system.”
Jack VanDerhei, research director of Employee Benefit Research Institute (EBRI), believes either of the two proposed 401(k) changes under review would have a “catastrophic” effect on the current retirement saving system.
The 20/20 plan provisions curtailing non-taxable contributions would freeze out many higher-paid employees from signing up for a 401(k), which could lead some companies, according to critics, to question if plans would still be worth offering employees.
Reducing retirement-plan contributions for those at the higher end of the wage scale will inevitably have a bad effect on those in the middle and at the bottom, ABC’s Dudley says.
Every day, Obama is running up another bill, that’s not when money is being wasted without our knowledge as in the GSA scandal. The latest scheme was reported by The Washington Examiner. The White House wants $469 million tax dollars for green programs in Africa and South America that will preserve pastureland and help women who can’t afford to move from hot land allegedly made worse by global warming.
In better times, that would be one thing, but these are the times when our government is talking about killing our savings and investments.