The Wolves are at the door.
They want your Retirement money.
But they don’t want to say that outright. No, they are wolves, and they want to be sneaky about it.
We are from the Government and we want to help you save more.
The Proposal is only half of the story.
So let’s start at the beginning…
According to the Labor and Treasury Departments, draft federal regulations will be published for public comment as soon as next week which would “promote” the conversion of 401(k) and IRA accounts to annuities. Make no mistake here: Obama is after your retirement money. The “annuities” will “invest” not in the familiar packages of bond and stock mutual funds but in the Treasury debt!
That’s right folks, your retirement! 🙂
All under the guise of “helping you save more”.
SO THEY CAN SPEND IT! or cover up the debt.
After all, the government only paid out $100 Billion in interest alone in January.
“Officials in the Obama administration are moving quickly to develop the investment infrastructure behind the president’s proposal for mandatory automatic enrollment in individual retirement accounts, which could be supported by the creation of Treasury-issued retirement bonds
J. Mark Iwry, deputy assistant secretary for retirement and health policy at the Department of the Treasury, said that administration officials are exploring some “conservative” 😦 options for investing the assets of 78 million Americans that he estimates could be automatically en¬rolled in this “universal” workplace retirement system. (Before it’s News)
The biggest pool of real money left in the U.S. (more than $4.7 trillion) is in 401(k) and IRA “defined contribution” accounts. Created by Congress, these saving for retirement devices allow millions of working Americans in more than 700,000 private plans to defer federal income tax on annual contributions to the account.
During working years (the accumulation phase), the account is invested mostly in private companies. These retirement accounts are the lifeblood of capitalism.
In retirement, tax is paid on the amount withdrawn from the account. Many retirees choose to buy private annuities with all or part of the 401(k) locking in guaranteed (lower) return. The annuity allows further tax deferment because only a portion of the payout is return of principal. Private annuities also presently invest mostly in private companies although they are permitted to also invest in Treasury debt.
Now the feds want to “regulate” the inclusion of tax-deferred annuities into already tax-deferred retirement accounts of still-working Americans. As stated this week by Assistant Labor Secretary Phyllis C. Borzi and Assistant Treasury Secretary Mark Iwry, recent stock losses to retirement accounts mean that the feds must protect workers with safer “lifetime income options.” And what could be “safer” than Treasury bonds with principal and interest guaranteed by the U.S. government?
The idea is called Orwellian-ly “Guaranteed Retirement Accounts”.
You are mandated to save money. They government takes that money and pays you back later.
Sounds like a good deal, doesn’t it?
Sounds like Payroll, FICA, and SocSec Taxes to me. Just another wolf at the door wanting another of my chickens in return for a promise of a return later (anyone else hearing Wimpey from Popeye??)
The idea to confiscate your retirement money came (no surprise) from Liberal academia.
On Nov. 20, 2007, Theresa Ghilarducci, professor of economic policy analysis at the New School for Social Research in New York, presented a paper proposing that the feds eliminate the tax deferral for private retirement accounts, confiscate the balance of those accounts, give each worker a $600 annual “contribution,” assess a mandatory savings tax on every worker and guarantee a 3 percent rate of return on the newly titled “Guaranteed Retirement Accounts,” or GRAs.
Professor Ghilarducci repeated the proposal on Oct. 17, 2008, in testimony before the House Committee on Education and Labor. She testified that the current system “exacerbates income and wealth inequalities,” and told an interviewer later: “I’m just rearranging the tax breaks that are available now for 401(k)s and spreading … spreading the wealth.”
The professor cited another reason supporting her plan – you’re too dumb. The federal takeover would eliminate investment risk because “Humans often lack the foresight, discipline and investing skills required to sustain a savings plan.”
Responding to the professor’s remarks, Chairman of the Committee Rep. George Miller, D-Calif., blamed Wall Street for the stock-market drop and pledged to “strengthen and protect Americans’ 401(k)s, pensions and other retirement plans.”
Argentina did just that. The Wall Street Journal reported on Oct. 22, 2008, that Argentina had seized all private retirement accounts and promised to compensate holders of those accounts with government bonds. Investors thereafter fled Argentina, and the value of those bonds collapsed.
The current proposal does not go this far. The Employee Benefits Security Administration in the Department of Labor will issue a request for information inviting ideas on how annuity lifetime options should be structured into defined contribution private retirement plans.
This is the first step. Recent stock-market gains have taken the edge off the push to nationalize these accounts in return for the “security” of government-guaranteed return. A future “crisis” of stock-price downturn could be just the trigger needed to make professor Ghilarducci the czar, or czarina, of your retirement account.
You will be forced into another Social Security-like scheme with the proposed mandatory Guaranteed Retirement Annuity, with 5% of your salary confiscated into the program. You will also eventually find your existing retirement funds forced into the government program and you will lose your ability to invest and protect your retirement funds outside of the dollar, government bonds, and the US investment markets at some time in the future. The only questions are when and what the final details of this, the greatest potential wealth confiscation in the history of the world, will be.
Today over $15 trillion is sitting in tax-favored retirement plans, including $4 trillion in IRA accounts. Retirement savings make up 35% of all private assets. Washington is broke, the deficit is soaring and Congress simply can’t wait for Americans to retire so they can start taxing these funds. The politicians are tired of waiting; they need your money now.
Imagine what Liberal Ideologues like Obama could do with that money!! 🙂
At some time during the next decade, a global run on treasury debt and the dollar will also likely take the American stock market down past lows not seen since the financial meltdown crisis in 2008 and 2009. The 50% to 75% stock market pullback during the actual bankruptcy of the Washington debt and paper dollar will send shock waves through retirees and current plan participants as their private retirement plan balances plummet.
At this time, Washington will “come to the rescue” and guarantee all private retirement plan market values back to pre-crisis levels. The gullible American public will overwhelmingly support this effort by switching their dwindling funds into the Guaranteed Retirement Annuity managed by the government. For the first few years, Washington will probably label those few of us who warn that Americans have lost their retirement benefits as extremists, Ron Paul paranoids and Tea Party advocates.
Just like Health Care, which by the way is still coming regardless of what the people say. 😦
Emerging from a meeting with Pelosi yesterday (Feb 2), Reid acknowledged that the most likely scenario for passing reform is what has come to be known as Plan B: Congress would preemptively pass an amending bill through the 51-vote budget reconciliation process, allowing the House to adopt the Senate bill word for word.
“That seems like a strong possibility,” Reid said.
House Speaker Nancy Pelosi plans to take a shot at the health insurance industry next week by scheduling a vote on a smaller bill to revoke its half-century-old exemption from antitrust laws.(Politico)
So THE AGENDA is THE AGENDA, damn the people, full steam ahead!!
“Nothing just happens in politics. If something happens you can be sure it was planned that way.” ~ President Franklin D. Roosevelt
“When plunder has become a way of life for a group of people living together in society, they create for themselves in the course of time a legal system that authorizes it, and a moral code that glorifies it.” ~ Frédéric Bastiat
To read the whole article by Lew Rockwell on what to do now: http://www.lewrockwell.com/holland/holland12.1.html
But here’s the Other Half of this little horror tale:
That’s right Taxes!
Bend over because they are not only going to steal your wallet but your clothes while they are at it.
But naturally they aren’t going to come right out and say it.
They aren’t that stupid.
No, it’s much more subtle and pernicious, as most Liberal Ideas are.
Atr.org: But there is one bad–very bad–tax increase on the small business sector in the Obama budget. Under his plan, the top two income tax rates increase from 33 and 35 percent to 36 and 39.6 percent. We’ve documented before that two-thirds of small business profits pay taxes in these bracket levels. Small businesses pass their profits through to their owners, who pay income tax on them. To raise taxes on “the rich” is a laser-beam tax hike aimed at small employers.
Small business owners also have to pay the Medicare portion of the self-employment tax at the high margin. Furthermore, they will face a phaseout of their itemized deductions (Pease) and personal exemptions (PEP) under the Obama budget, unlike 2010 law.
What does that mean for the marginal tax rate on small business activity? Assuming a 5 percent state income tax rate, the calculation is the following for a sole proprietor or general partner (S-corporation owners don’t have to pay Medicare tax, so it will be slightly smaller for them):
|PEP and Pease||2.34%|
So, the top marginal tax rate on small business income will rise to 49.19 percent by my reckoning, up from about 41 percent today. This is a huge increase in the tax rate on most small business profits.
And these are the small businesses Obama wants to hire people. But he wants to crush them Health Care “reform”, Mandatory Retirement Accounts, higher taxes and less deductions.
Sure sign me for that. 😦
That’s a Job creator if I ever saw one!!
Oh, and your taxes are going up to.
I know, I know, Obama has repeatedly said that “95% of Americans” will not see any tax increases.
BUT HE WAS LYING.
And he still is.
Remember the Bush Tax Cuts. Set to expire on Jan 1, 2011.
The Liberals and their Bush Derangement will let them expire.
Senate Minority Leader Harry M. Reid (Nev.) declared in 2006: “Bush’s tax plan offers next to nothing to average Americans while giving away the store to multimillionaires.”
DO YOU REALIZE OUR TAX BRACKETS ARE GOING UP ‘BY DEFAULT?’ Even if the tax rates are NOT approved (i.e. Congress does NOT have to approve), we will automatically get higher tax brackets.
So if Congress says nothing at all about it, they automatically go up.
Now isn’t that politically convenient.
And they go up AFTER the mid-term elections and you wont feel them on your 2011 taxes until 2012 tax season, which just happens to be Obama’s Re-election year.
Beginning in 2011, tax rates from 2001 will return.
Here’s a list compiled by Tax Foundation staff of major federal tax changes that will occur in 2011 when this package expires:
• Individual income tax rates go from 10%, 15%, 25%, 28%, 33%, and 35% to 15%, 28%, 31%, 36%, and 39.6%.
• Child credit falls from $1,000 per child to $500 per child.
• Capital gains tax rates would revert back to 10% and 20% (depending on AGI), while they are currently at 5% and 15%.
• Dividends would once again be taxed at the ordinary income rates (see above), while today they are currently at 5% and 15%.
• After being fully phased out for tax year 2010, the estate tax would be fully reinstated with a top rate of 60 percent and a $1 million exemption.
But don’t worry, you’re not “the 95%”. 😦
You can always contribute to your 401(K) for the tax deferment…Oh, wait the government wants to take that over too!!
To help you save for retirement. 🙂
Ah, ain’t they just the most caring and compassionate people…
One of the best deductions (other than a home) is a small business.
Oh, wait, they are raising taxes on them too.
Gee, isn’t the government’s compassion and generosity of spirit just wonderful. 😦
We are from the Obama Administration and we are here to help you… 🙂
And I haven’t mentioned Obama’s “green” environmental initiatives… 🙂
Isn’t he just the best President ever…. He cares so much… 😦
“None are so hopelessly enslaved as those who falsely believe they are free.” Johann Wolfgang von Goethe