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New Lame Duck Threat to Bailout Union Pensions (401k threat)
Human Events ^ | 10/8/10

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 ...


TOPICS: Business/Economy; Constitution/Conservatism; Crime/Corruption; Front Page News
KEYWORDS: 111th; 401k; bailout; bho44; bustunions; congress; democratcongress; democratcorruption; democrats; economy; elections; fail; gra; liberalfascism; obama; pensions; redistribution; socialism; spreadthewealth; stealthewealth; taxcheatparty; taxes; unioncorruption; unionpensions; unions
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To: Starboard
You may have something there, but might be more to it. Obama might be setting us up for a big fall--pulling money out of the stock market just after the election to make life hard on us for voting for the Republicans and blame them for the financial problems of his making.

Read this here:CNBC's Fast Money Scroll down and read comments.

Then again it could just be lots of talke.

41 posted on 10/13/2010 6:23:50 PM PDT by madison10
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To: roses of sharon

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


42 posted on 10/13/2010 6:46:49 PM PDT by Tzimisce (No thanks. We have enough government already. - The Tick)
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To: Tzimisce

Not a window left in any federal office


43 posted on 10/13/2010 6:50:16 PM PDT by eyedigress ((Old storm chaser from the west)?)
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To: Tzimisce

........Read my TAG Line.......


44 posted on 10/13/2010 6:57:59 PM PDT by GitmoSailor (AZ Cold War Veteran -Will the NOV election only be LOST under MARTIAL LAW?)
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To: roses of sharon

Unions are using threats in their ads....
http://www.americanthinker.com/blog/2010/10/government_unions_gone_wild.html


45 posted on 10/13/2010 7:01:12 PM PDT by csmusaret (If the Bush recession ended in June 2009, did the Obama economy begin in July 2009?)
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To: ncfool

This would be THE last straw.


46 posted on 10/13/2010 7:55:28 PM PDT by Newton ('No arsenal is so formidable as the will and moral courage of free men and women.' -Ronald Reagan)
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To: ncfool; The Sons of Liberty; DallasDeb; Spok; Major Matt Mason; Publius6961
This story is complete BS. Human Events is simply lying. There is NOTHING in Guilarducci's proposal about "seizing" 401(k)s. Instead, she advocates getting rid of the tax deduction for 401(k)s & IRAs, and replacing it with basically another government welfare program. But it wouldn't affect current 401(k) balances.

Her plan is awful. But Human Events isn't reporting facts. It's reporting totally unneccessary and irrational lies.

47 posted on 10/13/2010 9:05:55 PM PDT by ChicagoHebrew (.)
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To: roses of sharon

I am tempted to cash out my ira and take the tax hit now.

Government can go to Hell.


48 posted on 10/16/2010 10:45:50 AM PDT by Diggity
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