This has been done in other countries.
I believe the House will prevent such a move from taking place through the legislative route, leaving the administration with doing this by executive fiat.
I do not believe that would happen unless Obama gets re-elected and does not have to face the voters again.
The Adam Smith Institute Blog
European nations begin seizing private pensions
Hungary, Poland, and three other nations take over citizens’ pension money to make up government budget shortfalls.
By Jan Iwanik, Guest blogger / January 2, 2011
People’s retirement savings are a convenient source of revenue for governments that don’t want to reduce spending or make privatizations. As most pension schemes in Europe are organised by the state, European ministers of finance have a facilitated access to the savings accumulated there, and it is only logical that they try to get a hold of this money for their own ends. In recent weeks I have noted five such attempts: Three situations concern private personal savings; two others refer to national funds.
Just realize this is not a new conversation going on in our rulers chambers.
Much of this was being discussed back in 2008 just before the ‘crisis’ hit. It was one of the main reasons I took my money, paid the penalty and pulled it out of any type of government ‘tax-free’ anything the day after the election.
They were writing this stuff then, they’ve had 4 years or more to work on perfecting it to not miss anything.
We talk about our unborn already being in tax debt, but somehow never think about our government taking their future tax earnings from our retirement accounts ...now. The whole idea behind this tax deferred stuff was you would be in a low tax bracket at distribution time too. So instead of a 30-35% bracket you may be down in a 15-20% bracket.
If the government decided to claim their tax money today, they would take it at the higher tax rate. But your overall earnings would be cut by 50% or more. You not only lose 35%, but you also lose the earning power of that money.
“Black says it’s likely any attempt by the U.S. government to seize private retirement accounts would be preceded by a cataclysmic economic event similar to the 2008 financial crisis, only worse. This time, lawmakers will respond by changing investment law that may force retirement account holders to invest a portion of their savings in, say, 30-year Treasury notes.
Some lawmakers are onto this, however. Rep. Michele Bachmann, R-Minn., has recently criticized such efforts in a letter to the Obama administration warning against attempts to confiscate Americans’ retirement accounts.”
Learn more: http://www.naturalnews.com/032406_retirement_accounts_federal_government.html#ixzz1N5D8hVkk
They will issue waivers for selected groups and individuals.
>> “leaving the administration with doing this by executive fiat.” <<
.
Can’t be done that way.
Executive orders affect only the actions of federal employees. They are essentially memos from the boss.