Democrats Discuss Taking Over People’s 401K’s

October 29th, 2008 at 01:22pm KMorrison

If you don’t think an Obama, Pelosi, Reid run government would result
in a dramatic swing to the left, read US News and World Reports article
on congress’ discussion of takng over people’s 401K’s. 401K’s are not
‘rich people’ savings plans they are middle America’s retirement and
savings plans, and Dems are looking to make them into ‘government
created’ accounts. Would Obama, Dems Kill 401(k) Plans?

I
hate to use the “S” word, but the American government would never do
something as, well, socialist as seize private pension funds, right?
This is exactly what cash-strapped Argentina just did in the name of
protecting workers’ retirement accounts (Efharisto, Fausta’s Blog).
Now, even Uncle Sam isn’t that stupid, but some Democrats might try
something almost as loopy: kill 401(k) plans.

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.”

Hat Tip to Smart Girl Politics original article Kiss Your 401k Goodbye!


Democrats Discuss Taking Over People’s 401K’s

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7 Comments Add your own

  • 1. Joe  |  October 29th, 2008 at 3:00 pm

    You missed the rest of the story…

    I’ve heard those nasty socialist, marxist, lenninist, facist and downright mean Democrats are also going to take away all savings, houses, cars and puppy dogs. They will leave everyone with just a tin shack to live in and everyone must raise their own food as well!

    Fear, fear… scare scare. The American people aren’t buying it anymore.

    How do you post this bullcrap yet not post any defense of it?

    Its not just McCain/Palin that are getting more and more pathetic. It is the entire GOP. Look at that asinine ad that Elizabeth Dole just put out. She is a moron. Her poll numbers are going to plummet.

    The McCain campaign is an absolute joke at this point. If/when McCain/Palin goes down in flames I seriously hope that the GOP tries making Palin the face of the party.

  • 2. Joe  |  October 30th, 2008 at 2:18 pm

    KM,
    I have a serious question for you…

    Aren’t you the least bit pissed off that the best McCain and the GOP can do in their quest for the White House is bring up stupid stuff?
    Anything from
    Obama not having a valid US birth certificate
    Obama and Jeremiah Wright
    Obama and Bill Ayers
    Obama and some Middle East expert that works at Columbia
    Obama as a socialist
    Obama as a Marxist
    Obama would be the death of Israel
    Obama would mean that scary liberals are in charge of government

    I’m sure I’ve left SOMETHING out.

    But hey, what else does McCain do? Well… he touts Joe the Plumber over and over and over again as if a plumber from Ohio should be the deciding factor for millions of people across this country.

    Wouldn’t it make so much more sense if McCain was actually telling people how his ideas are the right ideas for America???? Nothing but scare scare scare.

    Here… let’s compare some major things (since you don’t appear to want to have a post about it):

    Taxes:
    Obama wants to roll back the Bush taxes on the top 5% back to where they were under Clinton. Everyone else gets a cut.
    McCain wants to make Bush’s tax cuts permanent. How is this any different than George W Bush?

    Healthcare:
    Obama wants to help millions of uninsured get insured. Their health will help lower everyone else’s healthcare.
    McCain will tax your current Employer health plans. If you don’t want that, you can go and get your own and you would get a $5000 credit. Too bad healthcare costs an average of $12,000. He basically says to privatize it. Deregulate it.

    Regulation:
    Obama is for more regulation since this is one of the driving factors of the mortgage crisis.
    McCain has admitted that he is anti-regulation on everything.

    Social Security:
    Obama says to up the max income that ss taxes come out on.
    McCain says to privatize it. Didn’t Bush try this already??

    Iraq:
    Obama thinks it is silly that we continue to spend $10 billion a month without any kind of plan to finish this thing. Plan to start pulling troops out and force Iraq to start stepping up on their own without using us as a crutch.
    McCain wants us to stay “until we win” without actually saying what “winning” means. How is this any different that what Bush has done for the last 7 years?

    Energy:
    Obama wants to invest in “green jobs”. This is a way to get out of oil and at the same time add jobs. He says drilling is only part of the solution. Nuclear is also part of the solution, but not so much.
    McCain wants to just drill, drill, drill. When you are done with that, drill some more. Bush has the same belief. Oh yes… and build 45 new Nuclear Power Plants. Does it matter that a Nuclear Power Plant costs billions and takes many years to build? Does it matter that they are not as safe as so many other alternatives?

    Jobs:
    Obama wants to give a tax credit to companies that hire US workers. Take away credits for those shipping jobs overseas.
    McCain wants to what? He never really talks about this.

    In general:
    Obama says lets work together and change the direction of this country.
    McCain says Obama is scary. Fear fear fear.

    It couldn’t be more obvious on who to vote for.

    OBAMA/BIDEN ‘08

  • 3. Joe  |  October 30th, 2008 at 2:33 pm

    Now THIS is funny. How many times has this happened to McCain/Palin?
    Try tying Obama to someone or something bad and it turns out they’ve done something with that same person/group.

    In regards to Khalidi, however, the guilt-by-association game burns John McCain as well.

    During the 1990s, while he served as chairman of the International Republican Institute (IRI), McCain distributed several grants to the Palestinian research center co-founded by Khalidi, including one worth half a million dollars.

    A 1998 tax filing for the McCain-led group shows a $448,873 grant to Khalidi’s Center for Palestine Research and Studies for work in the West Bank. (See grant number 5180, “West Bank: CPRS” on page 14 of this PDF.)

    The relationship extends back as far as 1993, when John McCain joined IRI as chairman in January. Foreign Affairs noted in September of that year that IRI had helped fund several extensive studies in Palestine run by Khalidi’s group, including over 30 public opinion polls and a study of “sociopolitical attitudes.”

    Of course, there’s seemingly nothing objectionable with McCain’s organization helping a Palestinian group conduct research in the West Bank or Gaza. But it does suggest that McCain could have some of his own explaining to do as he tries to make hay out of Khalidi’s ties to Obama.

    McCain is SO out of ideas it is getting humorous.

    KM… really… throw out some sort of defense of your candidate. I need to hear it.

  • 4. LiberalNitemare  |  October 30th, 2008 at 8:59 pm

    The idea of increasing taxes on 401k’s is so ignorant that its staggering. Its almost stupid enough to make you forget how bad the proposed replacement is.

    The damage this would cause to the stock market is obvious to anybody. Anybody except Joe.

    Joe - do you even know what a 401k is?

  • 5. Joe  |  October 31st, 2008 at 12:39 pm

    Nice. Just keep calling names or calling someone stupid.
    I have a 4yr college degree from a top 20 college. I have a fulltime job that I have been in for 10+ years. I make 6 digits. I have a 401k that took a hit just like everyone else’s did.

    The point here is this:
    a) The headline as “Democrats discuss taking over peoples 401k

    They are NOT going to take over anyones 401k. A change in taxes on 401k plans wouldn’t even change under a Dem president. This is just fear mongering.

    b) the point of the post was that having Reid, Pelosi and Obama in control would be bad for everyone because they will make this a socialist country.

    You people are fools if you honestly believe that.

    In the early 2000’s, you had Frist, Hastert and Bush. Did they do anything about getting rid of abortion? no. did they turn this country into a Conservative freak-show? no.

    All you people have left is fear, fear, fear. McCain doesn’t even hide it anymore. he doesn’t offer any plans, just more scare scare scare.

  • 6. LiberalNitemare  |  November 2nd, 2008 at 11:20 am

    Actually the point of the post was to point out what might be in store for 401k plans. In order to make that point, the post discusses Teresa Ghilarducci’s visit with house democrats and her ideas about eliminating the tax breaks currently given for the 401k plan.

    Is it possible that you and your vaunted 4yr degree failed to even read the post before commenting on it?

    In fact, as I read thru your responses I notice that in all of your previous responses you havent really addressed the subject of the post in the first place. (except to deny it - without offering any proof or basis for your opinion.)

    In fact, you are the one who had used your four comments on this post to do exactly what you accuse me of - insult and spread lies and fear.

    Has even one of your comments on this board had anything to do with the posted subject matter?

    I stand by my statements. Increasing taxes on 401k plans will cause people to move thier investment out of those vehicles. That movement would cause harm to the american stock market at a time when the market is already weak.

    Anyone who actually has a 401k, wouldnt need that to be explained to them.

  • 7. Joe  |  November 3rd, 2008 at 1:40 pm

    Damn man…
    Is there any way you actually have a post that either a) doesn’t call some one names or b) doesn’t insult someone? I seriously don’t think you are capable.

    So maybe you aren’t capable of actual research as well?
    Here, let me help.

    Here are the highlights for you:

    In this case, the news that “the Democrats want to take away your 401(k) savings” turns out to be little more than last-minute election fearmongering. We try to keep it nonpartisan here at the Answer Desk, so let’s try to review the facts.
    The Democrats’ supposed assault on the 401(k) program began percolating last week on a few blog posts and e-mails but jumped into “wider distribution” (OK: “the MSM” if you prefer) when it began showing up on the stump. In a Friday interview with CNBC’s Larry Kudlow, Republican presidential candidate Sen. John McCain said of the Democratic-controlled Congress:
    “They want to take the 401(k)s and use that money to give that to the government to spend, rather than people,” he said. “And I think that’s very dangerous disincentive to savings, which is exactly the cause of one of our problems, as we all know.”
    Here’s where we all take a deep breath. There is no proposal in Congress to take away your 401(k) savings account. In any case, the stock market has already done a pretty good job of wiping out several trillion dollars worth of 401(k) savings without any help from Congress.
    And that, in fact, is precisely what prompted Rep. George Miller, D-Calif., head of the House Committee on Education and Labor, to convene a hearing on Oct. 7 to review a number of proposals to improve on the 401(k) plans that have become the mainstay of most Americans’ retirement income.
    At that hearing, one of the witnesses, Teresa Ghilarducci, an economics professor at The New School for Social Research, made an interesting observation. By her calculations, the government spends as much as $80 billion a year in tax breaks to subsidize 401(k) savings plans. In her opinion, that money could be better spent offering a tax credit for a revised retirement plan that would guarantee a minimum income stream to people who saved for retirement. You’d give up some of your tax savings in return for a guaranteed return for life.
    Some of the other panelists didn’t agree with her. In any case, it was a hearing. The purpose of hearings is to “hear” new ideas. Testimony is not legislation. So far, that’s as far as this idea has gotten.

    But hey… I’m sure you will come back with calling me an idiot or something. So be it. I don’t expect much else from anyone on the right-wing (and to think I once considered myself a Republican).

    As for my other posts that don’t talk about the issue of the thread… if you read my posts, I continue to ask those starting the thread why they don’t come back on and debate the point of the thread. Since I never hear from them, I thought I would just post my own things showing the hypocrisy and the foolishness that is the McCain/Palin campaign.

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