“From each according to his ability; to each according to his need.”—Karl Marx, The Communist Manifesto
As you can see, the cover of Time magazine, dated December 18, 2009 began propagandizing 401(K) plans as untenable as a prelude the White House “Annual Report on the Middle Class”.
From an article published at Human Events, we are now learning that the Obama regime is seeking to drag Americans down into poverty via economic tinkering with a plan to seize private 401(K) plans.
Individual retirement accounts, whether private or corporate, have been accumulating money which is tax free. The Triumvirate of Fearless Reader, Pelosi and Reid see this as you getting “free” money and they are slobbering to get their hands on accounts that total hundreds of billions of dollars.
In February of this year, the White House released its “Annual Report on the Middle Class” containing new regulations favored by Big Labor including a bailout of critically underfunded union pension plans through “retirement security” options. (See the embedded document below.) The idea seems to be that the government would "guarantee" some sort of retirement for all, unions and non-union workers alike, with the funds collected from the once-private retirement plans.
The Republicans are prepared to fight. A House GOP Savings Recovery Group letter revealing this insidious plan was sent to Labor Secretary Hilda Solis and Treasury Secretary Timothy Geithner. The letter reads in part:
“In the Annual Report of the White House Task Force on the Middle Class, Vice President Biden discussed at length the creation of so-called Guaranteed Retirement Accounts, (GRAs) which would provide for protection from ‘inflation and market risk’ and potentially ‘guarantee a specified real return above the rate of inflation’—presumably at taxpayer expense. In the Report, the Vice President recommended ‘further study of these issues.’”
“The Vice President’s comments are troubling, insofar as they come on the heels of testimony before Congress from supporters of GRAs proposing to eliminate the favorable tax treatment currently afforded to 401(K) plans, and instead use those dollars to fund government-invested GRAs into which all employees would be required to contribute a portion of their salary—again, with a government subsidy. These advocates would, essentially, dismantle the present private-sector 401(K) system, replacing it instead with a government-run investment plan, the size and scope of which remain to be seen. This despite data showing that 90 percent of households have a favorable opinion of the existing 401(K)/IRA system.”
An executive for a large Midwestern company has said, “I would pull every dime out of my 401(K), pay the taxes and penalties and stick the cash in my mattress before I would let those (expletive deleted) have it!”
Imagine how much windfall revenue would accrue to the federal government if the American people all did that. Could that be the plan?