Confiscate personal retirement accounts?

[Lady Beretta]

http://www.globalresearch.ca/index.p...t=va&aid=11031

This is just the first section of the article from back in November in a Carolina Newspaper.


Dems Target Private Retirement Accounts

Democratic leaders in the U.S. House discuss confiscating 401(k)s, IRAs


RALEIGH — Democrats in the U.S. House have been conducting hearings on proposals to confiscate workers’ personal retirement accounts — including 401(k)s and IRAs — and convert them to accounts managed by the Social Security Administration.

Triggered by the financial crisis the past two months, the hearings reportedly were meant to stem losses incurred by many workers and retirees whose 401(k) and IRA balances have been shrinking rapidly.

The testimony of Teresa Ghilarducci, professor of economic policy analysis at the New School for Social Research in New York, in hearings Oct. 7 drew the most attention and criticism. Testifying for the House Committee on Education and Labor, Ghilarducci proposed that the government eliminate tax breaks for 401(k) and similar retirement accounts, such as IRAs, and confiscate workers’ retirement plan accounts and convert them to universal Guaranteed Retirement Accounts (GRAs) managed by the Social Security Administration.

Rep. George Miller, D-Calif., chairman of the House Committee on Education and Labor, in prepared remarks for the hearing on “The Impact of the Financial Crisis on Workers’ Retirement Security,” blamed Wall Street for the financial crisis and said his committee will “strengthen and protect Americans’ 401(k)s, pensions, and other retirement plans” and the “Democratic Congress will continue to conduct this much-needed oversight on behalf of the American people.”

Currently, 401(k) plans allow Americans to invest pretax money and their employers match up to a defined percentage, which not only increases workers’ retirement savings but also reduces their annual income tax. The balances are fully inheritable, subject to income tax, meaning workers pass on their wealth to their heirs, unlike Social Security. Even when they leave an employer and go to one that doesn’t offer a 401(k) or pension, workers can transfer their balances to a qualified IRA.

[Coops]

I cannot even imagine the S---storm if this ever got close to a vote. After encouraging people to contribute the maximum, entice them with tax free growth and deductible contributions, then to take it away and subject the money to the same failed economics of the social security system, when the employee could have chosen not to participate in the first place is madness and has to be illegal. This would cause mass hysteria, suicides, secession, riots, murders, terrorism, etc.

They should privatize SS and get that line item out of the federal budget and off the taxpayers paycheck.

[knight0334]

If this goes down and there are folks that dont raise a stink, they will need to be tossed out of this country along with the government.

[GuyMontag]

Can we fire the government and start over? I don't mean to impeach any person or group; I mean every last person. My head is going to explode...

[Evolution]

Can we fire the government and start over? I don't mean to impeach any person or group; I mean every last person. My head is going to explode...

I wish. I don't think a majority of the U.S population has the balls to actually stand up to their government. Trust me. If their is going to be anyone standing up against the government, it will have to be a majority.

[LittleRedToyota]

this is not going to happen.

there were about 5 people in the country who actually took ghilarducci's proposal seriously.

it's a demonstrably stupid idea, it would be unconstitutional if existing balances were included, and, most importantly perhaps, the 401(k) industry lobby is way too powerful to let it happen.

seriously, this got a little press when it was first discussed, but it has completely died since then.