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 ...
Read this here:CNBC's Fast Money Scroll down and read comments.
Then again it could just be lots of talke.
Don’t worry, this will never pass.
-smartest people in the room talking about TARP
Don’t worry, it’ll never get through the Senate
-smartest people in the room talking about Obamacare
Don’t worry, that bill isn’t going anywhere.
-smartest people in the room discussing Financial Reform
Don’t worry, they’ll extend the Bush tax cuts.
-smartest people in the room
Don’t worry, this 401K grab will never happen.
-smartest people in the room right now
Not a window left in any federal office
........Read my TAG Line.......
Unions are using threats in their ads....
This would be THE last straw.
Her plan is awful. But Human Events isn't reporting facts. It's reporting totally unneccessary and irrational lies.
I am tempted to cash out my ira and take the tax hit now.
Government can go to Hell.