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Dems want to Nationalize your 401Ks

Posted by rightwinger on October 23, 2008

I heard someone yesterday on the radio saying that they have to take our 401Ks away so they can pay for Universal Health Care.  Really should this be a surprise to any reasonable thinking American.   Obama keeps saying 95% of Americans will get a tax cut.  Get real people he had to take something from us and its our 401Ks!!!  Apparently everyone will be required to to pay 5% into a government retirement account.  This sounds like – can you guess – social security.  We already know SS is going bankrupt.  My only retirement is from my 401Ks.  Yes the stock market is down, but my company matched my contributions so I am doing well just from that.  3% guaranteed from the government is worthless.  First of all they will raid the fund like they have with SS.  Secondly 3% does not beat inflation.  Third I will have to pay higher taxes.  Wow its a triple bang to take the only retirement I have and make me pay more taxes.  This is just an attempt to make us more dependent on the government.  They want us in bread lines.

Powerful House Democrats are eyeing proposals to overhaul the nation’s $3 trillion 401(k) system, including the elimination of most of the $80 billion in annual tax breaks that 401(k) investors receive.

House Education and Labor Committee Chairman George Miller, D-California, and Rep. Jim McDermott, D-Washington, chairman of the House Ways and Means Committee’s Subcommittee on Income Security and Family Support, are looking at redirecting those tax breaks to a new system of guaranteed retirement accounts to which all workers would be obliged to contribute.

Read the article for yourself.

Here is waht US News World Report says:

I’d suggest that Pethokoukis vastly underestimates the effect this change will have on the stock market. The advent of private tax-deferred retirement accounts created a huge investor class in the U.S. By some estimations, more than 70% of American adults have money in the stock market in long-term investments for their eventual retirement. That’s a revolutionary change in the relationship between labor and ownership, one that capitalism succeeded in creating where Marx and his followers only fantasized.

What happens when the tax deferral on this investment ends? Most people won’t want to take the risks of the market without it, certainly not on the scale they do today (about $5 trillion in capital) and likely not after the Fannie Mae/Freddie Mac collapse. They’ll start moving to savings accounts or gold and removing their money from the markets. The flight of capital will eliminate the necessary engine for recovery, but that’s a minor point. The price of stock will utterly collapse as everyone looks to liquidate their holdings, crashing Wall Street and throwing tens of millions out of work as publicly-held companies disintegrate.

Read the full article for yourself.


2 Responses to “Dems want to Nationalize your 401Ks”

  1. After the last administrations economic mess, the 401’s are pretty much worthless. This post is nonsense.

  2. rightwinger said

    Do you really believe that? You are really misinformed. The Economic crisis is 90% on the Dems. Fannie Mae cooking the books while Obama’s buddy Franklin Raines made off with $90 million. I love the way the Dems try to blame Bush when they passed the laws to make Fannie Mae’s portfolio 50% high risk loans. Obama himself represented ACORN in suing a bank forcing them to make these junk loans. Do some research, please. I have no retirement at this point because Social Security will be bankrupt in 15 years while the Dems are saying there is no problem with it. Now you want to take the one thing I do have my 401K. The Dems just want to make us all dependent on the government while they line their pockets like they did with Fannie Mae.

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