When Mr. Obama refers to ‘MyRA’, does he mean yours or his?
Mr. Obama went ahead with an Executive Action (EA) to plan retirement savings accounts for half the nation. The government will control and regulate it.
Mr. Obama told the American public on Tuesday in his State of the Union address that half of the populace needs to save more for their future. He causally said he wanted to help Americans save more. We apparently need the government – the same government that runs Medicare and Social Security – to act as middle men for us.
He said this in his address:
“Let’s do more to help Americans save for retirement. Today, most workers don’t have a pension. A Social Security check often isn’t enough on its own. And while the stock market has doubled over the last five years, that doesn’t help folks who don’t have 401ks.
That’s why, tomorrow, I will direct the Treasury to create a new way for working Americans to start their own retirement savings: MyRA. It’s a new savings bond that encourages folks to build a nest egg.
MyRA guarantees a decent return with no risk of losing what you put in.
And if this Congress wants to help, work with me to fix an upside-down tax code that gives big tax breaks to help the wealthy save, but does little to nothing for middle-class Americans. Offer every American access to an automatic IRA on the job, so they can save at work just like everyone in this chamber can.
And since the most important investment many families make is their home, send me legislation that protects taxpayers from footing the bill for a housing crisis ever again, and keeps the dream of homeownership alive for future generations of Americans.” [He would eliminate personal responsibility in a housing depression but by doing so, he is also putting himself in control of all private housing but that is an aside which I will deal with in a later post]
Mr. Obama followed through on his promise in the SOTU speech and put out a Presidential Memo describing his latest Presidential Action the following day. There is an excerpt at the end of this article.
The Executive Action or EA is a way of taking over peoples’ retirement savings while grandfathering in current savings plans. He wouldn’t want too many alarm bells ringing. This is the camel’s nose under the tent.
WE SHOULD BE CONCERNED ABOUT THE EA
This Executive Action is the camel’s nose under the tent for an Executive power grab.
Mr. Obama wants the trillions from private retirement savings. He eventually wants to see all retirement savings under government control – it’s in his budgets. It will end up like Social Security – an ATM for hungry politicians. You should be very frightened at the prospect.
Do you think I’m exaggerating? Then look at what Mr. Obama put in the budget year-after-year:
Obama’s 2013 budget put a cap on how much Americans can save in tax-sheltered investment vehicles (IRA’s). Mr. Obama proposed 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 for retirement. This does not apply to unions.
It gets worse. He wants to confiscate it when you die, force you to contribute to union pensions, and take back your unused vacation days.
Mr. Obama wants to redistribute all income. He might start with the rich, but only a fool believes it will stop there.
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.
THE PROOF IS IN THE BUDGETS
In the fy2008 budget, Obama first proposed the 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 another way of funding the profligate national government.
President Barack Obama’s Fiscal Year 2013 budget plan went further. He 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.
The budget plan resuscitated 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 was a replay of his 2008 presidential run’s “Automatic IRA.”
SECURE CHOICE PENSION AND GOVERNMENT RETIREMENT ACCOUNTS AS WRITTEN IN THE FY2013 BUDGET
Secure Choice Pension and Government Retirement Accounts (GRA’s) as written in the fy2013 budget 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 that Obama’s socialism will only negatively impact the rich are misguided.
The unions, like Trumka’s AFL-CIO (Trumka is a socialist), are in favor of de-privatizing retirement accounts. That is not surprising because some of the money will be used to fund their savings and it will provide them with more funds to help buy elections.
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.
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.
Europe is suffering under this type of theft. Several countries seized private pension funds to pay for government debt in lieu of austerity measures.
Click the link to read what Goldworth has to say about it.
EXCERPT FROM THE PRESIDENTIAL ACTION OF JANUARY 28 2014:
Section 1. Retirement Savings Security. (a) By December 31, 2014, you shall finalize the development of a new retirement savings security that can be made available through employers to their employees. This security shall be focused on reaching new and small-dollar savers and shall have low barriers to entry, including a low minimum opening amount. In developing this security, you shall ensure that it:
(i) protects the principal contributed while earning interest at a rate based on yields on outstanding Treasury securities;2 [They will protect it like they do Medicare and Social Security]
(ii) offers savers the flexibility to take money out if they have an emergency and keep the same Treasury security if they change jobs; and [Editor’s note: can you imagine how difficult it will be to get your own money from the government? One day it will be prohibited completely]
(iii) is designed to help savers start on a path to long-term saving and serve as a stepping stone to the broader array of retirement products available in today’s marketplace.
(b) Within 90 days of the date of this memorandum, you shall begin work with employers, stakeholders, and, as appropriate, other Federal agencies to develop a pilot project to make the security developed pursuant to subsection (a) of this section available through payroll deduction to facilitate easy and automatic contributions.
Sec. 2. General Provisions. (a) Nothing in this memorandum shall be construed to impair or otherwise affect:
(i) the authority granted by law to a department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
Listen to what the Wall Street Journal said in April 2013:
I’m not a Libertarian but I know they are good with money. This video was sent by Harvey Miller. Listen to this video interview with a famous, accomplished businessman and Ron Paul: