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Thread: Are They Serious ?

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    Banned Eric Stoner's Avatar
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    Default Are They Serious ?

    Let's be clear. This is NOT an Obama proposal but there is a proposal in Congress to nationalize 401K plans. The Dems are considering whether to replace the current system with one in which EVERYONE gets a $600 "subsidy" to "invest".
    They propose to remove the current favorable tax treatment and replace it with mandatory investment in a government administered fund that would purchase U.S. Government bonds paying 3%.

    The details are on workforce.com and hotair.com.

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    Featured Member Miss_Luscious's Avatar
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    Default Re: Are They Serious ?

    This is one of the things that I disagree wit Dems on. How the fuck it this a good idea? It's like social security II. It's a bad bad idea. Dems seem to get crazy about shit like this in financial crisis times and they start coming up with all sorts of dumb ideas. I hope it doesn't pass.
    "A stupid man's report of what a clever man says is never accurate because he unconsciously translates what he hears into something he can understand." - Bertrand Russell

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    Quote Originally Posted by Katrine View Post
    Ya'll bitches need to calm down. Cerously.
    In other words: Boo-motherfucking-hoo

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    Veteran Member dishis's Avatar
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    Default Re: Are They Serious ?

    Now that will anyone say that is not socialist ?
    “If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand”

    Milton Friedman

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    Featured Member Miss_Luscious's Avatar
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    Default Re: Are They Serious ?

    That is certainly closer to socialism than what the McCain camp has accused Obama of doing.
    "A stupid man's report of what a clever man says is never accurate because he unconsciously translates what he hears into something he can understand." - Bertrand Russell

    "It's just a matter of people having low self esteem and being way too easily offended." -Random Guy on a Internet Forum

    Quote Originally Posted by Katrine View Post
    Ya'll bitches need to calm down. Cerously.
    In other words: Boo-motherfucking-hoo

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    Banned Melonie's Avatar
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    Default Re: Are They Serious ?

    How the fuck it this a good idea? It's like social security II
    I posted about this a few weeks ago when the first non-mainstream media news stories were released. According to my accountant, the effect of such a proposal would be as follows ...

    - contributions to 401k retirement funds would become part of a person's taxable income ... which would be taxed in the current year, and taxed at the 'highest' applicable tax bracket. For example, if a person grossing $75k per year is currently contributing $5k to a 401k, and their employer is matching the $5k contribution, at present both the person and the employer are not taxed on that $5k. Under the new plan, the $5k would be taxed at the highest applicable rate i.e. 28% for the person and who knows for the employer (depends on profitability). Total current year tax revenue for the gov't would go from say 25% * $70k = $17,500 to the same $17,500 + (28% * $5k = $1400 for the person) + (20% * $5k = $1100 for the employer) = $20,000. Of course it remains to be seen whether the person or their employer could continue to afford retirement contributions and matches at current levels, with the probability being that both would be reduced by the amount of the new tax.

    - the contributed money would be used (like Social Security contributions) to fund 'special gov't bonds' ... which could in turn be 'borrowed' by congress at a 3%interest rate, spent immediately, and eventually repaid by raising tax rates on future taxpayers.

    - the $600 'kicker' is essentially a one time 'contribution' from US taxpayer coffers to convince people to lock their 'private' retirement money up in 'special gov't bonds' in the same way that their SSI retirement money is already locked up in 'special gov't bonds'.

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    Default Re: Are They Serious ?

    Quote Originally Posted by Eric Stoner View Post
    Let's be clear. This is NOT an Obama proposal but there is a proposal in Congress to nationalize 401K plans. The Dems are considering whether to replace the current system with one in which EVERYONE gets a $600 "subsidy" to "invest".
    They propose to remove the current favorable tax treatment and replace it with mandatory investment in a government administered fund that would purchase U.S. Government bonds paying 3%.

    The details are on workforce.com and hotair.com.
    It may not be an Obama proposal, but it will be once he gets elected. Obama takes his marching orders like a good little democrat.

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    Banned Melonie's Avatar
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    Default Re: Are They Serious ?

    actually, the $600 'kicker' is now being discussed as an annual retirement 'contribution' to every American by the US gov't ... regardless of the American's actual income (or in the total absence of an income). Thus a person earning $75k a year loses $1400 worth of annual income tax deduction / deferral which accompanies a 401k and gets $600 in exchange. However, a person earning $25k a year loses nothing in annual income tax deduction / deferral (since they don't pay income taxes in the first place) but gets a new $600 'handout'.

    The one time 'teaser' is now being discussed in the form of the US gov't crediting those agreeing to convert their 401k to a new gov't retirement plan with LAST MONTH's 401k balance.

    Damn ... if this proposal flies ... and if national health care flies ... maybe I'd better stay in the USA and simply let my investments move to Aruba or Costa Rica !!! This may turn into a real 'gravy train' for people whose 'official' incomes are less than $30k per year.

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    God/dess Deogol's Avatar
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    Default Re: Are They Serious ?

    I wonder if the 401K lose value there will be a tax rebate. Nah. Just kidding. I know the answer to that.

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