hat tip to Gary Spina for the Goldworth info at the end
Tax-free until the day you die? Is that why you save in your 401K? Better not count on that with this administration. Obama’s budget wants to steal money from 401K’s by putting a cap on how much Americans can save in tax-sheltered investment vehicles. That’s not all. He wants to confiscate it when you die, force you to contribute to union pensions, and steal your unused vacation days. He wants to redistribute all income. He might start with the rich, but YOU ARE NEXT!
Mr. Obama proposes to “limit an individual’s total balance across tax-preferred accounts to an amount sufficient to finance an annuity of not more than $205,000 per year in retirement, or about $3 million for someone retiring in 2013.” He believes that people should not be allowed to accumulate more money than the government deems necessary in retirement.
He is breaking a contract! It’s theft similar to what we see going on in the EU, just not as grand yet.
Full story at the WSJ
THEY ARE COMING FOR YOU NEXT, make no mistake about that!. They already proposed it back in 2008. 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.
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. Your savings will be invested in government pensions in addition to all the taxes you already pay for these pensions!
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.
The Obama Administration’s 256-page FY 2013 Budget Proposal, is a replay of his 2008 presidential run’s “Automatic IRA.”
It has grown worse with two offerings: Secure Choice Pension and Government Retirement Accounts (GRA’s) which will do the following:
- 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.
- Guaranteed Retirement Accounts (GRA’s) will be administered by the Social Security Administration. –because they’re doing such a great job?
People who think Obama’s socialism will only negatively impact the rich are misguided.
The unions, like socialist Trumka’s AFL-CIO, are in favor of de-privatizing retirement accounts. That is not surprising because the money will be used to fund their big government programs.
This is socialism folks and it is an idea that Obama will not give up.
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?
Click this link at Goldworth for more information. There are bills in Congress right now to begin this process.