Skip to comments.Irish Bombshell: Government Raids PRIVATE Pensions To Pay For Spending (Could it happen here?)
Posted on 05/10/2011 9:52:37 AM PDT by SeekAndFind
Ireland's minister of finance, Michael Noonan, has outlined plans for a new tax on private pensions in Ireland.
The new tax on private pensions will be 0.6%, and last for four years.
This was just tweeted by Ireland's RTE News:
BREAKING: The Government is to impose a 0.6% levy on private pension funds for the next four years to fund its #jobsinitiative #dail
Doubt this will go over well.
More details to come...
(Excerpt) Read more at businessinsider.com ...
Well, someone has to go first ...
Is not the I WON going to Ireland sometime soon? Who knows what ideas and concepts he plans to bring back.
Will the last industrious, productive person in Ireland please turn off the lights upon leaving.
Didn’t Argentina seize all the money in private pension funds?
Do Irish pensioners pay income tax on the pension?
I already pay on my private pension at regular US federal tax rates.
It’s a helluva lot more than 0.6 percent obviously.
No - you pay income tax on withdrawels.
“0.6% to the capital value of assets under management in pension funds established in the State.”
This plan is to confiscate 0.6% of you fund balance, for each of the next four years.
Imagine if you have $100k in an IRA, and the government just confiscates $2,400 out of the fund balance.
Spreading the wealth, I think they call it.
Looks like it’s already starting to happen here:
Illinois Senate president wants to look at taxing retirement income
And here’s what other European countries are doing:
European nations begin seizing private pensions
Hungary, Poland, and three other nations take over citizens’ pension money to make up government budget shortfalls
Could it happen here? You betcha.
Sorry I am not well versed in finance or for that matter, any money matter.
Is this saying they are proposing no difference between the Before Tax and the After Tax contributions for your pension?
And it will only last 4 years,if you believe that i got a bridge for sale..
I wonder how quickly America will be locked down so the cowards in D.C. can move freely after their massive theft.
The problem with it happening here is that we will have some notice and a whole lot of money would leave the country in a very short period of time.
Really? They try and pass un-popular legislation all the time in the middle of the night while America sleeps..
The US Gov’t carries out its stealth taxes differently.
We have the FED buy Gov’t debt/print money. Money is printed, Gov’t spends it on “jobs programs” or whatever scheme they have in mind, the money stock is diluted, you pay more for food, fuel, etc... due to inflation, your savings are expropriated through negative real interest rates, and your real salary declines.
The end result is as the same as Irish though.
The GOP has control of Congress and there are enough T-Party people there that would not let this go through without a public vote.
No member of Congress who voted for it, would ever be re-elected.
The money was to be used to fund "inner city" projects.
Folks, that's how 1960s Marxist-Alinsky street/campus revolutionary rabble and their ideological issue feeeeeeeeel about these things. Arguably they are now "the Establishment." Certainly in the universities and the MSM they are. They are the Rat Party (formerly the traditional, patriotic Democratic Party).
Under ordinary circumstances, I would agree with you, hands down. What we have witnessed as of the last two years is a federal government that barely acts within the Constitution as it is.
At some point people may wake up and realize that what the Fed is doing is nothing short of Taxation Without Representation.
You mean that Obama could do an end around on Congress?
He’s already done it. It’s coming through the Obamacare bill and SS. Social Security will be means tested, but Obama wants to make it look as though the Republicans are advocating it.
The tax on the 401Ks will come in the form of reduced SS payment. The bigger the 401K, the higher the tax, the lower the SS payment.
Honestly Eva, I don’t know what exactly “they” are capable of anymore. The track record shows “by any means necessary” and we apparently have a SCOTUS that can’t be bothered with Constitutional matters anymore; least not hot button matters.
“The GOP has control of Congress and there are enough T-Party people there that would not let this go through without a public vote.”
The number of people with a significant amount of money in these plans is probably not enough to overcome the liberal media’s championing of the cause.
Someone’s got to pay off the Banks somehow.
Bloody way to run a country that could be extremely productive into the ground,same thing that happened under British rule is happening now.Most likely it will lead to the same results.
Then the lunatics running this country will go crying that they had to pay for making a mess of things,what a bunch of ignorant trash.
What do we get for putting our money in a (pre-tax) IRA or 401K? Do we get a tax break? Not really, we get taxed on the full amount, it is just delayed. So what good is it? It is rules city, limits and penalties if we withdraw early, withdraw late, etc., etc.. And now it is in danger of being taxed or confiscated. For what? The big, great, advantage of delaying taxes from when it is earned to when it is spent. It ain’t worth it.
I don’t know, it seems to me that almost everyone who works in the private sector has a 401K.
Maybe we should suggest that the tax be extended to union pensions at the same rate.
Of course the assumption is that the tax rates in the future will be comparable to today’s tax rates, but what if they are much higher in the future?
No actually. You won't have ANY notice. You'll wake up, and poof they will be GONE.
If you don't HOLD it, you don't OWN it.
Folks, this are two reasons why governments love pension progrms. The first reason is the ostensible concern that people are too stupid to save for their old age. The second is that pension programs create vast pools of wealth that can be easily tapped into because they must account to government.
You do know that distributions from IRA and 401k accounts ALREADY increase the fraction of SS payments included in taxable income. Once upon a time, all SS payment were tax-exempt because FICA taxes were originally subject to income tax. That changed during the Reagan Administration.
Additional means testing of SS benefits is inevitable regardless of whether Republicans or Democrats are in charge. The government’s welfare programs, especially Medicare, Medicaid, and Social Security, are simply unsustainable. They are programmed to blow up, and there is nothing that can prevent it. Goldwater warned of this day back in the 1960s. It’s not a matter of “if”, but “when”.
Exactly. We don’t know what the tax rates in the future will be, but if the debt bomb is any clue, they will probably be much higher.
As soon as the road is paid for we'll stop collecting tolls.
RE: The new tax on private pensions will be 0.6%, and last for four years.
HA HA HA “last for four years” my foot.
Remember what Ronald Reagan warned after years of governing and observing :
“The nearest thing to eternal life we will ever see on this earth is a government program.”
That’s why inflation is goobermint’ favorite tax.
“I dont know, it seems to me that almost everyone who works in the private sector has a 401K.”
Yes, but what you have to look at is how many people have over, say, $20,000. I read a statistic that said that number was fairly small. The gov’t will say that they are going to take that paltry sum and offer a better benefit.
I think lots of people are dumb enough to believe it.
Unless they make it retroactive, which the Feds have done in the past?
So it is best to spend it all now, instead of saving up for retirement?
The Irish, to be blunt, are so stupid that they (like most Europeans) think that private wealth is inherently evil (ie, stolen from “the people”) and that the accumulation of wealth “hurts the economy” and that this move to confiscate will “create jobs”.
Sadly, having passed largely from a peasant economy to a bubble economy, the Irish know nothing about capitalism. Again, though, they are basically run of the mill Eurosocialists. No different than the French.
I think lots of people are dumb enough to believe it.”
Sadly, you are quite right. The lure of socialism is strong for the ignorant masses.
I can’t say that it’s best not to save, it’s just going to be tougher for everyone unless the Republicans can rein in Obama. It’s all about the redistribution of wealth and killing off the US economy, so that we can never reach the heights where we once were.
We’ll be ok, but our kids are going to have it tough. To get an idea of what exactly the left is trying to do, do a google search on Caterpillar/ WSJ. Think about where Caterpillar is doing well. It’s not in the US.