Do you have a 401 K

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Cathy_H

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House Democrats - - Abolish 401K tax breaks - Create new tax

Sen. Barack [SIZE=12pt]Obama's Democratic allies in Congress are looking into a radical new plan that would fundamentally change the way Americans save for retirement.[/SIZE] House Democrats recently heard testimony on the idea and, under a potential Obama administration, would likely move to put it in place. [SIZE=12pt]Democrats want to seize the money that workers currently invest in their 401(k) plans and replace the popular retirement savings accounts with a one-size-fits-all government sponsored retirement account. [/SIZE][SIZE=12pt]Under the scheme, Americans would be forced to transfer all of their hard earned retirement savings from their 401(k) to the government.[/SIZE]The government would contribute $600 a year to fund each account and would pay a rate of return of around three percent in interest. The government would also mandate that each worker contribute 5% of their yearly salary to the accounts. Under current law, workers with 401(k) plans contribute to their retirement accounts and earn interest tax free. [SIZE=12pt]The Democrats' plan would end those tax breaks, amounting to as much as a 15% tax hike on each American worker[/SIZE].

Rep. Jim McDermott (D-WA) said recently that Democrats had better ideas for the $80 billion that Americans contribute to their 401(k) plans each year. "We have to start thinking about whether or not we want to continue to invest that $80 billion for a policy that's not doing what we say it should." Sen. Obama would likely sign on to the plan as president.Obama, McDermott, and Congressional Democrats miss the point that [SIZE=12pt]under current law, Americans have control over their retirement savings, where and how it is invested, and when and how much they contribute. The idea to nationalize retirement savings is another example of Democrats' socialist proclivities. They want control of Americans' retirement to reside in Washington DC, not on Main St., all in the name of "retirement security." [/SIZE]

http://news.aol.com/political-machine/2008...nd-401-k-plans/

House Democrats: Abolish 401k Tax Breaks, Create New Tax

What do Democrats do when they see a system or program that isn't working? They throw more money at it, or recreate the same system under another name, or both.

Social Security (or rather, Socialist Security) has been revealed as the glorified government-mandated ponzi scheme that it is, and the Democrats answer is to create another version of it.

Workforce Management says [SIZE=12pt]House Democrats are looking at another plan to tighten the goverment's grip on your life, your retirement, and take a bigger chunk of your paycheck.A plan by Teresa Ghilarducci, professor of economic-policy analysis at the New School for Social Research in New York, contains elements that are being considered. [/SIZE]She testified last week before Miller’s Education and Labor Committee on her proposal.

At that hearing, the director of the Congressional Budget Office, Peter Orszag, testified that some $2 trillion in retirement savings has been lost over the past 15 months.

Under Ghilarducci’s plan, all workers would receive a $600 annual inflation-adjusted subsidy from the U.S. government but would be required to invest 5 percent of their pay into a guaranteed retirement account administered by the Social Security Administration. The money in turn would be invested in special government bonds that would pay 3 percent a year, adjusted for inflation.

[SIZE=12pt]The current system of providing tax breaks on 401(k) contributions and earnings would be eliminated[/SIZE].

“I want to stop the federal subsidy of 401(k)s,” Ghilarducci said in an interview. “401(k)s can continue to exist, but they won’t have the benefit of the subsidy of the tax break.”

[SIZE=12pt]So the Dems want to take away the tax breaks for 401ks...and tax you yet another 5%[/SIZE]???And this idiotic program would be nothing more than a Social Security spinoff. It's just more of the same government-mandated socialist ineptitude.

The definition of "reform" in the Democrat playbook is ludicrous. Keep doing things that don't work. Come up with new ways to do the same things that don't work. Tax more. It'll all be fine.

We need to end that--now.

http://www.dakotavoice.com/2008/10/house-d...tax-breaks.html

The Social Security system is failing - Why do they think we trust them to responsibly handle our 401 K plans!!! Folks you need to email every person you know that has a 401K plan now!!!!!!!!!!!! Obama will sign anything the democrats put in front of him......
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There will be a democrat controlled government & you will not have a say once you put "That One" in the oval office!
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You are putting the fox in the hen house -
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Wake up America!
 
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Do you really think at this point in the game any of this dribble is going to change someones mind? Enough is enough.
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All I can wonder is how will days be filled once this election is over? Not to mention how quiet will the Back Porch become LOL
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I heard about this...I have what's called a Thrift Savings Plan (very similiar to 401k)...I'm sure it would effect me as well...I do not like this one bit!
 
Okay, everyone get out your phones and go to this website:

http://www.congress.org/congressorg/directory/congdir.tt

In the upper left you will find a box entitled "my elected officials". If you don't see it, perhaps you ended up on the home page, if so, click on "officials" in the bar below the "Roll-Call Congress.org" banner.

Put in your zip code and press enter.

Now you have a list of your personal elected officials, state and federal, with links to their official pages which are accessed by clicking on their link. On their official page you will find their office phone number, including the President's BTW which is accessed by clicking on the contact tab once their official page is loaded.

Literally, in 5 min. you will be able to call each one of them and praise or complain. A live human answers after 1 or 2 rings. These calls are compiled and the result is presented to the official. We've been told by the aide's that take the calls that calling is the best way to have your voice heard.

Snail mail takes too long they say, and they also say that they don't compile email or snail mail responses!!! The reason that email is not compiled is that their is no way to easily verify that you are who you say you are, and that you are not using spam programs to generate emails to the officials.

So put your representatives on speed dial and call them when you are unhappy about what is being proposed/voted on. While voting is important, you only get your voice heard once every couple years at best, but you can CALL all of these officials every single day and tell them how you feel about what they're doing and what they're going to be voting on in the near future, and the best part is....it only takes minutes a day to tell your management team how you want them to run your country.

Spread the word!
 
so we would have to pay Social Security and then also contribute 5% into this program as well???????????????????????

Is there gonna be anything left ??????????
 
All I can wonder is how will days be filled once this election is over? Not to mention how quiet will the Back Porch become
We informed voters will be busy covering our ears to drown out the sobs of the Obama supporters when they see the rest of their retirement going to "share the wealth". No quiet there! And folks she used those words - "share the wealth".
Congressional hearings have taken place to seize your 401 K and put it into social security!

If you are informed you have heard the sad news on social security - you trust them with your 401K???

Capital Commerce by James Pethokoukis

Would Obama, Dems Kill 401(k) Plans?October 23, 2008 10:47 AM ET | James Pethokoukis |

I hate to use the "S" word, but the American government would never do something as, well, socialist as seize private pension funds, right? This is exactly what cash-strapped Argentina just did in the name of protecting workers' retirement accounts (Efharisto, Fausta's Blog). Now, even Uncle Sam isn't that stupid, but some Democrats might try something almost as loopy: kill 401(k) plans.

House Democrats recently invited Teresa Ghilarducci, a professor at the New School of Social Research, to testify before a subcommittee on her idea to eliminate the preferential tax treatment of the popular retirement plans. In place of 401(k) plans, she would have workers transfer their dough into government-created "guaranteed retirement accounts" for every worker. The government would deposit $600 (inflation indexed) every year into the GRAs. Each worker would also have to save 5 percent of pay into the accounts, to which the government would pay a measly 3 percent return. Rep. Jim McDermott, a Democrat from Washington and chairman of the House Ways and Means Committee's Subcommittee on Income Security and Family Support, said that since "the savings rate isn't going up for the investment of $80 billion [in 401(k) tax breaks], we have to start to think about whether or not we want to continue to invest that $80 billion for a policy that's not generating what we now say it should."

A few respectful observations:

1) McDermott is right when he says the savings rate isn't going up. But the savings rate doesn't include gains to money you invest in the stock market. It ignores the buildup of net worth. (If you bought a share of XYZ Corp. in January at $100, for instance, and its value doubled by December, the savings rate measure would still value that investment at $100. In short, the savings rate is a phony number.)

2) So based partly on the above faulty logic, the $4.5 trillion, as of the start of the year, invested in 401(k) plans doesn't count as savings.

3) Ghilarducci would have workers abandon the stock market right at the bottom of the market. A stupid idea, according to Warren Buffett: "I don't like to opine on the stock market, and again I emphasize that I have no idea what the market will do in the short term. Nevertheless, I'll follow the lead of a restaurant that opened in an empty bank building and then advertised: 'Put your mouth where your money was.' Today my money and my mouth both say equities."

4) Ghilarducci would offer a lousy 3 percent return. The long-run return of the stock market, adjusted for inflation, is more like 7 percent.

Look at it this way: Ten thousand dollars growing at 3 percent a year for 40 years leaves you with roughly $22,000. But $10,000 growing at 7 percent a year for 40 years leaves you with $150,000. That is a high price to pay for what Ghilarducci describes as the removal of "a source of financial anxiety and...fruitless discussions with brokers and financial sales agents, who are also desperate for more fees and are often wrong about markets." Please, I'll take a bit of worry for an additional $128,000.

5) What effect would this plan have on an already battered stock market? Well, I would imagine it would send it even lower, sticking a shiv into the portfolios of everyone who didn't jump aboard. But I am sure the Chinese would love to jump in and buy all our cheap stocks to fund the retirement of their citizens.

My bottom line: If you believe in the long-run dynamism of the American economy, then you have to believe in the stock market. Listen to superinvestor Buffett, not the prof from the New School.

Link to the above info

http://www.usnews.com/blogs/capital-commer...401k-plans.html
 
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Perhaps just perhaps there are many informed voters, many intelligent voters even if they do not all agree with you. Of course I would not expect you to see it that way so no point in even telling me so.
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Gosh Our 401K! Now thats getting down right dirty!
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This is getting worse by the day!
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Maybe I'll have to think about moving to Mexico if Obama gets in.
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I would like to comment further... but trust me... It wouldn't be pretty. So I'll keep my mouth shut!!
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Joyce

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[SIZE=18pt]Vote McCain[/SIZE]
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Southern Heart-So if we vote Obama, we don't have a brain? I find that incredibly offensive.

Also: " House Democrats recently heard testimony on the idea and, under a potential Obama administration, would likely move to put it in place." THAT seems like a lot of conjecture to me. So I had to check out the source.

"Mark Impomeni is neither a journalist, nor a pundit. He is a citizen with a keen interest in politics and national issues. ... Mark is an ideological conservative, although not a member of any political party. ... Skeptical, argumentative, and in need of an outlet, Mark began writing political blogs as a diarist at RedState.com in the fall of 2005."

RedState.com is "Conservative news and community."

UNBIASED sources, people! Come on!
 
You're all up in arms about what some blogger says Obama MIGHT do,

but you have no problem with McCain saying he WILL tax your health care benefits?
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LowriseMinis

Thats what thousands of people were yelling at the McCain Rally..I am not going to argue the point..
 
This election has divided this country to the point that I think may cause some deaths by nov. 5. With that said I am so weary of all the bashing back and forth. We are not going to change any ones minds in who they wish to vote for. Some want change, it that means taking from some to give to others so be it.

It will change how I live, we have a small business that will be hit by this. I am in the prosses in looking for a second job just so my husband can keep his american dream. I work a day time job and now will work nights also to keep things going for us.

I guess if Obama wins we will just wait to see how he does indeed change our country. The change will not be good for us, but for others who donot want to work ,wow they will love it, which by the way is at least 2% of this country.

I will not be posting any more, it is hard to read all the bashing, I will cotinue to work my b#$t off like always and pray that our country does not change too much. America is great just the way she has always been....
 
I didn't know we had new forum monitors! Cool!
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I believe this has already been hashed over. Let's not do it again.
Sorry I should have put in the title - "Topic Repeat - Please IGNORE if you have already read this! "

You're all up in arms about what some blogger says Obama MIGHT do, but you have no problem with McCain saying he WILL tax your health care benefits
Won't apply to Lee & I.

Mark Impomeni is neither a journalist, nor a pundit. He is a citizen with a keen interest in politics and national issues. ... UNBIASED sources, people! Come on!
- - I just referenced the first couple I found but here ya go --
http://www.ireport.com/docs/DOC-123362

Democrats poised to eliminate 401 K

http://www.investmentnews.com/apps/pbcs.dl...2/REG/310139971

House democrats contemplate abolishing 401k tax breaks

http://news-cycle.blogspot.com/2008/10/dem...ting-401-k.html

Democrats Consider Eliminating 401 (k) Tax Breaks

http://www.workforce.com/section/00/article/25/83/58.php

House Democrats Contemplate Abolishing 401(k) Tax Breaks

http://www.usnews.com/blogs/capital-commer...401k-plans.html

Would Obama dems kill 401 k plans

http://www.smallerindiana.com/forum/topic/...ATopic%3A168719

Proposed 401 K changes by Congress

http://www.dailypaul.com/node/70405

Congressional hearings about new plan regarding 401 k retirement savings plan
 
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This is only a PROPOSAL by a few Dems - nothing else. And who is to say it will even get very far - or not change completely?? It is a little too early to get worried about this IMO.

But of course that does not stop the fearmongering machine from grinding into gear once again.... and spreading gloom and doom....
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This is seriously scary stuff. With as dismally as the Federal Government has handled almost every other financial matter, can't you just turn cartwheels thinking of them taking control of your retirement plans? This should sincerely scream SOCIALISM to any thinking person.
 
Retirement accounts have nothing to do with socialism. Screaming socialism over this is just more misguided fearmongering.
401(k) retirement accounts are personal assets. The government assuming control of these accounts would be............ (socialism)
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What you call fear mongering isn't, but it makes my head spin to see some people so adamant about things they clearly don't understand
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Socialism:
An economic system in which the production and distribution of goods are controlled substantially by the government rather than by private enterprise, and in which cooperation rather than competition guides economic activity. There are many varieties of socialism. Some socialists tolerate capitalism, as long as the government maintains the dominant influence over the economy; others insist on an abolition of private enterprise. All communists are socialists, but not all socialists are communists.
 
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