Posted on 10/22/2008 6:05:30 PM PDT by Chgogal
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.....
“The savings rate isn’t going up for the investment of $80 billion,” he [Democratic Congressman George Miller] said. “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.”
“From where I sit that’s just crazy,” said John Belluardo, president of Stewardship Financial Services Inc. in Tarrytown, New York. “A lot of people contribute to their 401(k)s because of the match of the employer,” he said. Belluardo’s firm does not manage assets directly.
Higher-income employers provide matching funds to employee plans so that they can qualify for tax benefits for their own defined-contribution plans, he said.
“If the tax deferral goes away, the employers have no reason to do the matches, which primarily help people in the lower income brackets,” Belluardo said.
“This is a battle between liberalism and conservatism,” said Christopher Van Slyke, a partner in the La Jolla, California, advisory firm Trovena, which manages $400 million. “People are afraid because their accounts are seeing some volatility, so Democrats will seize on the opportunity to attack a program where investors control their own destiny,” he said.....
(Excerpt) Read more at workforce.com ...
How are these idiots even in the running let alone winning.
this will absolutely kill any insentive to save for retirement.
with the absolute total cutting of pensions even the US Post Office for the last 20 years have cut direct pensions & gone with employee deposit & at best a company contributes.
To tax this deduction is crazy - it will kill insentive to save for retirement.
i mean damn haven’t retire people been killed enough w/ the SM crash?
later
They haven’t nearly done enough damage yet. just wait I’m sure they have much more they are planning.
Roth IRAs will be next. If you had enough extra cash to save for retirement, that’s not “fair”.
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Obama Says A Baby Is A Punishment
Obama: “If they make a mistake, I don’t want them punished with a baby.”
Try a search next time...
http://www.freerepublic.com/focus/search?m=all;o=time;q=quick;s=401%28k%29
that’s what people are voting for when they vote for obama. they don’t know what they are getting even if they read up on Obama’s policies
Excellent question! The answer? We have a complicit MSM.
Another ad for McCain.
If the Democrat congress puts bills like this up for a vote next year, it opens up the window to a major correction the year following. Unless, of course, Democrats haven’t done something to make it impossible for Republicans to regain seats.
It’s true. Democrats really do want to obliterate the US economy and make every single man, woman, and child completely at the mercy of the government.
The Democrats are calling the tax breaks “subsidies.” What idiots.
Can you feel it? Can you feel the rage building in the silent majority in this country? I hope and pray this rage EXPLODES on election day in the form of a HUGE MCCAIN VICTORY!
Will Obama veto this...I doubt it.
Great move, Donks — after people’s 401k’s have already been devastated in this market, you’re going to raid them and reduce their ability to recover.
What a bunch of morons.
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