Posted on 11/29/2012 11:20:58 AM PST by Perdogg
One of the earliest fears about tax-favored savings accounts like IRAs and 401(k) plans was that when this pool of savings grew large enough Congress would not be able to resist tapping it to help solve the nation’s debt problems. We’re about to find out if those fears—persistent for decades—have been justified.
Everything including the sacred mortgage deduction is on the table as lawmakers wrestle with the fiscal cliff, a year-end avalanche of scheduled spending cuts and tax increases. With a combined $10 trillion sitting in IRAs and 401(k) plans, retirement accounts make a juicy target. Some of this money has never been taxed, and under current law never will be.
(Excerpt) Read more at business.time.com ...
Then that confirms my first point that this would really by a back-door federal government takeover of many public corporations?
-PJ
What’s that? Just a second, my Obama phone er mobile phone is ringing... /s LOL
I hear ya.
I have a question. I am a state employee with a defined contribution plan with TIAA-CREF. It is partially funded by my employer. My contributions are mandatory and I cannot borrow against it.
How the heck would I get my money out of this thing if the SHTF? I don’t see how unless TIAA-CREF and my employer changed the rules on the plan as the topic was being debated. And who’s to say that there wouldn’t be some kind of look-back provision so that if you took out your money within a year of the government taking it, and weren’t actually retired, you’d have to pay it back?
From a financial sustainability perspective, why would TIAA-CREF, Fidelity, or any of the funds just hand over money? Yeah, it’s not theirs, but what happens to these businesses? I don’t think these businesses are going to stand for it, but I’ve been wrong before.
That would one of the potential outcomes...
Another would have the fedgov sell the shares in the market (depressing the price) in a controlled fashion - Like GM / AIG.
There is *nothing* good that comes out of this program in the end, unless you like socialism/fascism.
Those companies were already in ruins.
This proposal would kill the DOW. What would happen to healthy blue-chip companies that are relying on those stock values for their major capital projects?
These corporations would suddenly find themselves with under-water projects and no shareholder value to underpin them because of forced sell-offs at depressed prices.
The federal government will end up creating new GM's and AIG's overnight.
And who would buy back these stocks? Somebody has to be a buyer if the government is forcing 401(k) holders into selling. Would people be forced to sell their stock assets in 401(k)'s, only to buy them back at a lower price outside of a 401(k) structure?
This appears to be no different than when the Nazi's in 1930's Germany forced the Jews to sell their businesses at bargain prices or else face outright seizure.
-PJ
Mark Levine replayed his interview with the complete cypher moron “economist” woman from the New School (lib commie outfit). The interview is hilarious, conducted in 2008, and she did not know who Levine was.
It worth a listen. Go to Levine’s site and playback yesterday’s show. The woman has no clue, and thinks this will be “Better” for “the people”. Without their choice of course, like all socialism— theft.
You wouldn’t happen to know which hour of the show it is, do you?
That’s all very well and true. However, in the socialist mind ANYONE with more than money their target handout group (and contiually overuse the concept of “class”, like middle class, the lower class, etc.) is subject to “fairness”.
Two things required: the attitude of “anointment” of holier than thou , and the concept that MONEY belongs to the government— all money and all income. Which is completely false and central to socialism.
The grasshoppers are coming after the ants— Aesop’s Fable come to life.
He did it in the first two segments. Then at bottom of the hour (show is 6-9pm, so this would be 8:30) he did a live book promo interview with Dick Morris on his book “Here comes the Black Helicopters” think it’s called.
But sure it was in first hour then part of the second-— his laughter is worth it, as in the original interview the moron woman didn’t know he was insulting her. God save us from these meddling aholes of “fairness”.
To be paid once a year? Quarterly?
I like the fair tax. Everything but food has a fixed rate.
10% sounds fair but the feds would probably want 25%
Maybe settle for 15%
Yeah i heard it yesterday and she had no clue he was playing with her.
I agree with your points.
The Govt still owns AIG shares, I think.
“Even if they take over the retirement plans, just who exactly is going to buy all the stocks and bonds?”
If I understood Rush yesterday, part of it is that all further contributions MUST buy at least 5% in bonds.
Well, I don’t trust the scumbags, liars and thieves in Congress. They are capable of anything.
But in this current proposal, the government isn’t proposing to “take over” anything. They just want you and me to be able to contributes LESS to a tax-deferred retirement account, because they want tax money now.
Pension plans are tougher for them to get money from now, but they could find a way to limit corporate tax savings. But pensions are mostly disappearing in the corporate world. 9 times out of 10, if I meet someone who still has a pension, they’re a government worker of some sort.
Thanks for the response. To be honest, I’d be surprised if you could find one in ten with non-government retirement plans.
At any rather, I appreciate the comments. Take care.
“Yes and no. If we punish the Blue State voters that got Obama re-elected, that will be sweet justice. The base of the Republican Party, like the man who I was replying to, get very little benefit from the Mortgage Debt Loophole, as they simply don’t make $200k per year, and generally have enough kids to knock their taxes way down without it.”
By that argument The house republican(assuming anyone willing to listen to them. Should be claiming that the Democrats don’t want to tax the “rich” because they don’t want to close the tax loopholes thou which the so called Rich avoid taxes.
The democrats are just frauds.
I believe they will freeze withdrawals when they decide to confiscate them.
I cashed out half in FY 11 and half in FY12 to stay ahead of them.
Perhaps Romney should have mentioned some of these issues, and perhaps the Senate Republicans could be shouting it from the rooftops. Funny, I don’t hear anything.
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