Skip to comments.Obama Administration making plans to take over the 401(k)s to bail out their union backers
Posted on 12/14/2010 5:26:27 AM PST by IbJensen
Unionized labor is looting from us. Plans to take over our 401K- private retirement funds. Communists did the same in Argentina, sized private pension funds.
The Obama Administration is making plans to take over the nations 401(k)s in order to bail out their union backers and their bankrupted pension plans.
Connie Hair at Human Events reported:
In February, the White House released its Annual Report on the Middle Class containing new regulations favored by Big Labor including a bailout of critically underfunded union pension plans through retirement security options.
The radical solution most favored by Big Labor is the seizure of private 401(k) plans for government disbursement which lets them off the hook for their collapsing retirement scheme. And, of course, the Obama administration is eager to accommodate their buddies. Vice President Joe Biden floated the idea, called Guaranteed Retirement Accounts (GRAs), in the February Middle Class report.
In conjunction with the reports release, the Obama administration jointly issued through the Departments of Labor and Treasury a Request for Information regarding the annuitization of 401(k) plans through Lifetime Income Options in the form of a notice to the public of proposed issuance of rules and regulations. (pdf)
Republican Leader John Boehner released this statement today in response to this recent move by democrats:
Keep Bureaucrats Hands off Americans 401(k)s
House Republican Leader John Boehner (R-OH) and members of the House GOP Savings Solutions Group sent a letter to Labor Secretary Hilda Solis and Treasury Secretary Timothy Geithner warning the Obama Administration that the government should keep its hands off of the retirement savings of Americans, and should reject proposals that would dismantle or nationalize the private 401(k) system in favor of a government-run retirement security regime. Several Administration officials, including the Vice President, have voiced support for efforts to create so-called Guaranteed Retirement Accounts or impose new government mandates which would undermine 401(k) retirement savings plans and jeopardize employers willingness to continue offering them to their workers. Boehner issued the following statement:
The American people are asking where are the jobs? They arent asking for job-killing policies that jeopardize their retirement savings. Unfortunately, Washington Democrats are pursuing policies that make it more difficult to offer 401(k) savings plans to their workers, and some are even advocating replacing them with government-run accounts and ending 401(k)s altogether. Thats unacceptable and not the solution Americans need at a time when they are still rebuilding their retirement, college, and personal savings.
Republicans are committed to offering better solutions, and the proposal we have offered the Savings Recovery Act will help restore Americans savings and ensure that Washington does not stand in the way of families ability to save more. Its time for Democrats to stop advocating policies that will destroy Americans savings and work with Republicans on better solutions to help rebuild them.
Several GOP House members signed on to a letter delivered to labor Secretary Hilda L. Solis and Treasury Secretary Timothy Geithner expressing their concerns today.
Unionized labor is looting and extorting the money from taxpayer's.
We must watch now for new bail-outs to unionized labor or dictatorship = communism.
USA, Liberty from unionized labor and unionized, monopolized dictatorship.
Defend our Constitution. Defend Capitalism and terminate unionized labor from government.
See the Truth face of Unions.
Labor is always associated with communism and less education.
Unionized labor is the same like monopoly power, taking maximum profits at other peoples expense , prosperity, liberty and life.
Unions must be terminated from government. They are not legal. They should exist only in private industry to protect only basic rights of workers.
General Motor was destroyed by Union's inability to compete with other competitors.
In addition to it, communist Obama bailed General Motors at taxpayer's expense.
Paul Joseph Watson Infowars.com October 12, 2010
The government is preparing to seize the private 401(k) pensions of millions of Americans while enforcing an additional 5 per cent payroll tax as part of a new bailout program that will empower the Social Security Administration to redistribute pension funds in a frightening example of big government gone wild.
Public pension plans have been so aggressively looted already by the government that cities and counties face a $574 billion funding gap, according to a CNBC report.
That black hole is set to be filled by a new proposal that will fairly distribute taxpayer-funded pensions to everyone, by confiscating the private wealth of millions of Americans. Its proponents express staggering arrogance in thinking that they can just steal money people have worked for decades to accrue as if its their own.
Not only would the government confiscate 401(k) pensions, it would also impose a mandatory 5 per cent payroll tax payable by everyone, according to a hearing chaired last week by Sen. Tom Harkin (D-Iowa), Chairman of the Health, Education, Labor and Pensions (HELP) Committee.
This would, of course, be a sister government ponzi scheme working in tandem with Social Security, the primary purpose being to give big government politicians additional taxpayer funds to raid to pay for their out-of-control spending, writes Connie Hair.
The hearing was a platform for advocates of Guaranteed Retirement Accounts (GRAs), a program authored by Teresa Ghilarducci, professor of economic policy analysis at the New School for Social Research in New York. Back in November 2008, Ghilarducci testified to Congress that 401(k)s and IRAs should be confiscated and converted into universal Guaranteed Retirement Accounts (GRAs) managed by the Social Security Administration.
You dont hold hearings on something you dont intend to do, points out the Market Ticker blog. I hate it when Im right. I hate it even more when tens of millions of Americans are going to get reamed to pay for the crimes of the handful on Wall Street, and their crony enablers in Washington DC.
The GRAs would be enforced by means of a mandatory savings tax equating to 5 per cent of an individuals annual paycheck deposited to the GRA. Social Security and Medicare taxes would still be payable, employers would no longer would be able to write off their contributions and capital gains would be taxable year-on-year. In addition, workers could bequeath only half of their account balances to their heirs, unlike full balances from existing 401(k) and IRA accounts.
During a Seattle radio interview in October 2008, Ghilarducci explained the motive behind the plan, stating, Im just rearranging the tax breaks that are available now for 401(k)s and spreading spreading the wealth (emphasis mine).
However, as we painfully learned in the immediate aftermath of the original $700 million dollar bailout, which was originally sold on the basis that it would be used to pay off bad debt, governments that propose spreading the wealth under socialist-style financial reforms almost always collect the wealth under the pretext of being the saviors before greedily hoarding it all for themselves.
The GRA program is being pushed by the Economic Policy Institute, an organization housed on the third floor of the building occupied by the George Soros-funded Center for American Progress. The Center for American Progress is a think tank headed by Bill Clintons former chief of staff John D. Podesta, who was also head of Barack Obamas presidential transition team after the 2008 election.
In preparing to seize private pensions, the United States is going the same way as Argentinean government, which in 2008 nationalized the countrys private pension plans, known as AFJPs, confiscating the wealth of millions.
We have no doubt that here the right to private property is being violated. Not just for us but for society and the world, this is a clear confiscation, said opposition Radical Partys Ernesto Sanz at the time.
How will Americans react to having not only their wealth but their nest egg for future generations brazenly confiscated by the government in one fell swoop? If this doesnt prompt widespread rioting and civil disobedience in America on behalf of the besieged middle class then nothing will.
Dont be under any illusions, if you dont have a private pension and think this wont affect you think again. Once the pretext has been created that the state can simply confiscate privately earned wealth, they can then come after anything, your gold, your home, your kids and eventually your very freedom. Once the vampire of big government gets a taste for blood, the teeth will only sink in further, and Americas resemblance to third world tyrannies will rapidly accelerate.
“...being necessary for the security of a free state, the right to keep and bear arms SHALL NOT BE INFRINGED!”
Touch the 401Ks and pensions and it’s war.
The odds of this happening now are virtually zero.
Obama needs to be arrested, tried for treason and brought to justice. He is a cancer on America that needs to be removed.
I don’t think thInk there’s much chance of this passing with the new Congress coming in. But, I could be suprised.
What’s the use of having a 401K if someone else-anyone- can take it?
Maybe. Getting a measure like this through the house would be next to impossible. However, Obama could merely get the IRS to change the rules governing 401ks. He’s shown willingness to do by bureaucracy what he can’t get in the congress (EPA, FCC).
There’s going to be so much free stuff from the govt. that you won’t NEED your 401K! Govt. will provide!
If they are planning to try this, they had better get busy:
The deadline for the unions to get their act together on their pensions is 12/15/10. These funds would be the down payment on that. They are going to run out of time, I do believe.
And the chance of the new congress doing this is exactly ZERO.
All your 401k belong to us
There will be open season on liberals if this happens......................
The fact that it is even being talked about is astounding.
This is NOT going to happen. It has been refuted.
Some liberals will join the hunt. They have 401K plans at risk also.
That’s good to know.
All of this seems to be a bit hysterical. Plus, if you read down into the comments on that page it begins to get into all sorts of really wacky conspiracy theory B.S. including a mention of 9/11 truther filth.
Crap like this gives the TEA party a bad name.
It is now IRRELEVANT.