Skip to comments.New Lame Duck Threat to Bailout Union Pensions (401k threat)
Posted on 10/13/2010 1:38:09 PM PDT by roses of sharon
Democrats in the Senate on Thursday held a recess hearing covering a taxpayer bailout of union pensions and a plan to seize private 401(k) plans to more "fairly" distribute taxpayer-funded pensions to everyone.
Sen. Harkin (D-Iowa), Chairman of the Health, Education, Labor and Pensions (HELP) Committee heard from hand-picked witnesses advocating the infamous "Guaranteed Retirement Account" (GRA) authored by Theresa Guilarducci.
In a nutshell, under the GRA system government would seize private 401(k) accounts, setting up an additional 5% mandatory payroll tax to dole out a "fair" pension to everyone using that confiscated money coupled with the mandated contributions.
We need a comprehensive solution that addresses interrelated problems. For example, a system that places most of the burden for retirement saving on individuals will always have to wrestle with the problem of pre-retirement loans and withdrawals (simply plugging these leaks will not work, because many workers would stop contributing to the system). A system that relies on tax incentives to promote individual retirement savings will necessarily tend to favor high-income workers who can afford to save more and who benefit the most from these tax breaks. Conversely, a truly universal system would need to shield low-income workers from out-of-pocket costs or wage cuts.
Brett McMahon, spokesman for the Associated Builders and Contractors (ABC), a trade association, warns this hearing exposed part of a process that may come as early as the November lame duck push to bailout union pensions by attaching the bailout to an across-the-board extension of the current tax rates.
"I am deeply concerned that they will try to attach something like the Casey bill or the Casey bill in and of itself to tax cut extensions bill that is inevitably going to have to be dealt with at some point during the lame duck session,"
(Excerpt) Read more at humanevents.com ...
This county will experience a uprising like you have never seen. I have saved and invested for 30 years in my 401K. They will not steal it from me.
Do this and it will be a Dead Duck session.
An open warning - anyone trying to "seize" my hard earned savings will be answered and dealt with - with extreme prejudice!
This couldn’t be constitutional.
So, not only would they steal our money from us, but they would stop the 401K system which allows for tax-delayed savings, and instead charge us another 5% tax on our total earnings without the 401K deduction. Makes demoncratic sense to me. /sarc
So my 401k which has gone up and down and up and down is to be “shared” while union pensions are to be bailed out. I get it. Private citizens get screwed when their savings plans blow out.
Pensions are a ponzi scheme. END ALL GOVERNMENT PENSIONS. Taxpayers can afford them.
I know that Christine O’D will take office immediately and can vote in a lame duck, as does Byrd’s replacement. Any others that can take office immediately should be hitting this issue hard.
“When in the course of human events.....”
The line in the sand can;t keep moving backwards, folks.
At some point, you have to say “Enough, and NO MORE!”
If we do not peacefully take back this country on November 2nd, it will be 1860 all over again.
Taxpayers CAN’T afford them.
“This couldnt be constitutional.”
We’re already very close to having a SCOTUS that doesn’t care what’s constitutional.
“This county will experience a uprising like you have never seen. I have saved and invested for 30 years in my 401K. They will not steal it from me.”
They stole mine. I am one of the “Career Transitioned” who cannot find work.
They wont because the Republicans dont fight. They just sit there and let the Democrats define the issue. Every candidate should be repeating Newts line: Paychecks vs Food Stamps. I have not heard one candidate pickup on that. As you say, they should be hammering the Dems on the seizure of 401k issue. They dont.
Never EVER trust the government to do what they say they will do.
It is to those that don't believe in the constitution.
The Democrats have decided that everything is Constitutional until the courts say its not, and then they will pack the courts.
It is insane, as are the Dems, every darn one of them.
Always scheming on how to TAKE our earnings, they should all be treated like common horse thieves.
My sentiments exactly. I keep hearing/reading “if they do that it’s time for rebellion”, and yet nothing happens.
Would it this time?
The lawlessness of this administration, enabled by the democratic house and senate is mind-blowing, and I just hope and pray that after years and years it will be addressed/corrected/prosecuted. But I’m not very optimistic.
I guess justice just isn’t swift enough for me.
Of course it is. Under the commerce clause everything is fair game.
Pull it out. Take the hit. Invest in precious metals (Lead, brass, copper, steel,...)