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Obama, Dems Target Private Retirement Accounts
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Economy; Posted on: 2008-11-07 20:01:02 [ Printer friendly / Instant flyer ]
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Income and Wealth Redistribution 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.
**In a radio interview with Kirby Wilbur in Seattle on Oct. 27, 2008,
Ghilarducci explained that her proposal doesn’t eliminate the tax
breaks, rather, “I’m just rearranging the tax breaks that are available
now for 401(k)s and spreading — spreading the wealth.”
Income and Wealth Redistribution
The majority of witness testimony during recent hearings before the
House Committee on Education and Labor showed that congressional
Democrats intend to address income and wealth inequality through
redistribution.
On July 31, 2008, Robert Greenstein, executive director of the Center
on Budget and Policy Priorities, testified before the subcommittee on
workforce protections that “from the standpoint of equal treatment of
people with different incomes, there is a fundamental flaw” in tax code
incentives because they are “provided in the form of deductions,
exemptions, and exclusions rather than in the form of refundable tax
credits.”
Even people who don’t pay taxes should get money from the government,
paid for by higher-income Americans, he said. “There is no obvious
reason why lower-income taxpayers or people who do not file income
taxes should get smaller incentives (or no tax incentives at all),”
Greenstein said.
Source
**This plan makes sense: the majority of retirement accounts are held by European American baby boomers and those who came after the boomers. Blacks, Hispanics and some lazy white Americans will benefit profusely...all in the name of votes and "equality."
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News Source: august review
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