The Democrat War on our 401(k) Plans

Posted by PITHOCRATES - March 22nd, 2014

Week in Review

Retirees can’t get by on Social Security alone.  And we can’t raise Social Security payments because the program will be insolvent in a few years.  Because of our aging population.  More people are leaving the workforce than are entering it.  So fewer people are paying taxes to support those in retirement.  And those in retirement are living a lot longer into retirement than the Social Security actuaries thought they would.  Which is why Social Security is going bust.  And people need other sources of retirement income.  And a big source of that retirement income has been our 401(k) plans.  Which President Obama wants to take away (see Obama’s budget bad for 401(k) savers by Scott Hanson posted 3/19/2014 on CNBC).

President Obama’s proposed budget for 2015 would be a disaster for the millions of Americans who are underprepared for retirement. This plan would reduce the tax incentives for employers to offer retirement plans to their employees…

Under Obama’s budget plan, higher-income earners would be limited to a tax deduction at the 28 percent level, even if their current income-tax bracket is much higher…

This means they would not only pay taxes on some of their contributions today, they are fully taxed when they withdraw the money in the future. This, of course, is double taxation.

The Social Security Trust Fund doesn’t have any money in it.  All the money we’re paying into Social Security is going right out to pay for someone else’s retirement.  And what’s left over the government spends to buy votes.  Replacing our money in the Social Security Trust Fund with IOUs.  Promises to repay the money when we need it.  How?  By either borrowing more money.  Printing money.  Or taking a portion of our other retirement money we’re setting aside.  Our 401(k) plans.

It’s no secret that the Democrats hate these 401(k) plans.  For that’s a lot of money people are NOT spending.  And money they can’t tax.  The government is full of Keynesians.  They believe the only healthy economy is an economy where people spend everything they earn.  Keynesians see savings as leaks from the economy.  And they don’t like that.  For them consumption is everything.  And saving is for chumps.  They want our 401(k) plans.  Some have even been thinking about just taking that money and replacing it with some government program.  Like Social Security.  So they can get that money now.  And spend it.  For there are so many votes to buy and so little money to buy them with.  So the Democrats will wage their war on our 401(k) plans.  And then move on to something else.  For they have an insatiable appetite to spend.

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