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Democrats Want to Seize 401K’s, Put Government in Charge

Published October 26, 2008

Please tell me again why anybody would vote for these people? Oh I know, because the MSM doesn’t report things like this. It looks like democrats are now planning to take over your 401K for you.

“House Democrats recently invited Teresa Ghilarducci, a professor at the New School of Social Research, to testify before a subcommittee on her idea to eliminate the preferential tax treatment of the popular retirement plans. In place of 401(k) plans, she would have workers transfer their dough into government-created "guaranteed retirement accounts" for every worker. The government would deposit $600 (inflation indexed) every year into the GRAs. Each worker would also have to save 5 percent of pay into the accounts, to which the government would pay a measly 3 percent return. Rep. Jim McDermott, a Democrat from Washington and chairman of the House Ways and Means Committee’s Subcommittee on Income Security and Family Support, said that since "the savings rate isn’t going up for the investment of $80 billion [in 401(k) tax breaks], we have to start to think about whether or not we want to continue to invest that $80 billion for a policy that’s not generating what we now say it should."

Link: U.S. News

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Posted in Democrat, Domestic, Economy

Vinny

ha, these people can not wait to tie up your money! This is ridiculous! So If I have $300,000 in my 401(k), I'm supposed to let the government seize it, for a $600 GRA inflation annual increase– and I would have to pay 5% of my annual salary to receive a 3% interest rate on my money? This sounds like a plan that will immediately drown out the savings of the high earners, and in the long run, be bankrupt before those working now get to even see their money. Stupid. I can't stand these people. They are absolute worst. Well, lets look at their track record. Last I heard, social security is in the tank with annual losses. OoOo hopefully this plan will be just as well managed! Is this the “change-ism” that Barney Frank said we need?
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Keith

Social security is in the tank. I believe thats why the Democrats are looking at options. At least, in my opinion, that are taking the problem seriously. Republicans, being the conservatives they are, think things are find and that it will work it out. After all, change is bad.

If you read the article, the Democrats invited Ms. Ghilarducci to speak to them about this plan since it seems to be working in Argentina. Obviously its not a very good plan and I believe they will realize that and drop it.

I guess we'll see. And to Vinny's rhetoric about hating these people. You seem to forget what Reagan, Bush Sr, and Bush Jr has put our economy through. Let's see:

Reagan: Biggest recession in recent history
Bush Sr: Another recession
Clinton (hiss, boo): Unprecedented economic growth
Bush Jr: Another recession

As you well know. Economy good, retirement (including Social Security) good, stock market good. If our economy was a bit consistently better, we wouldn't be having quite the mess we're having now with SS. It's still messed up and they still need to fix it. Again, at least the Dems are looking at options.
bob wire

This will result in bloodshed in the streets!
sheepskin

If Obama is elected, how do we stop this 401k takeover? The government does a lowsy job of almost everything. Especially at spending money. Due to company changes I will be losing $12,000 of my annual earnings next year. I have some rental property that will be my retirment fund so I do not contribute to a 401k. Losing 12k/yr coupled with losing an estimated $2500 from this rediculous government 401k CRAP is going to cost me $1400.00/month and eventually my home. If this plan is passed, I would like to thank our companies greedy executives and stupid politicians for sending me into foreclosure and ruining my families standard of living. Tim
Susan

Yeah, the Democrats are certainly 'looking at options'. The only problem is that it's a horrendous scheme aimed at bilking the American people out of even more of their money and freedom. Typical socialist solutions coming from the Dems–nothing original here.

Keith, why don't you just take responsibility for your own savings and investing? You have the same opportunity as anyone else, but unfortuanately too many would rather take the 'safe' way out and let Daddy government blow their nose and wipe their backside.
one-shot

This is why people have baught guns for a long time. I baught three last week for i knew what was coming. The msm has laughed at the south for years and now look what's happening. I remember and old saying, the south will rise again. Look at the red states from the other night, where do you think the people who stand up and say enough is enough is going to come from heck it would tickle me to see the south become the united states of the confederacy.
one-shot

OW Keith, get over it. Reagan was the best president ever and that is something you guys are going to have to get over. I was in the 82D Airborne back in those days and we received the biggest raise ever given to the military see when PEOPLE keep more of their money the government sees it as a recession, when the government keep more than their share of money we call that an out of control government. PS Buy more ammo and guns, your going to need them.
Dan

share the wealth right ……… whatever
Roger

I just cancelled my contribution to my 401k. It may cost me a few dollars in company matched money but if more folks did this it would send a quick message. It's time to but our money where our mouth is.

Lookerover45

Roger, hello from Indiana.
I am about to jump ship with my 401k as well, but what other safe alternatives do we have??

Mike

This would warrant nothing less than a revolution.
Mike

This would warrant nothing less than a revolution.
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