House Democrats are eyeing eliminating 401K contributions, and mandating that 5% of our pay go into a retirement account run by the Social Security Administration.
They’ve got to be kidding me! Is this change I can believe in? The Republicans might suck, but the Democrats are seriously out to make everyone a ward of the state. Dr. Helen’s John Galt scenario is looking better all the time.
They can have my 401K when they pry it from my cold, dead account statement.
Geez, and am thinking of starting one up. I should that article to a fellow employee, who claimed it was McCain propaganda, cause according to her, Factchecker is correct with regards to Obama.
I think I’m gonna be sick……………
Yeah, do it. Spread the word. Tell her this whole mortgage crisis was caused by the Democrats too, started by Jimmy Carter, made worse by Bill Clinton. Yet, the Democrats are blaming it all on Bush and the Republicans, when it was Bush in 2001 that warned Congress to oversee Fannie Mae & Freddie Mac and again in 2005 by McCain to do the same, and both times fell on deaf ears.
Mortgage crisis? You ain’t seen nothing yet. If Obama wins and implements his tax plan, there’ll be massive layoffs, people won’t be able to pay their mortgages and the economy will definitely tank then.
It’s interesting that this kind of individual account proposal which was floated by the Bush administration is now being championed by those who poo-poo’ed it. Under Bush’s plan, the money going into the account would come from the social security tax. Here it’s another tax on top of the social security tax, so instead of just mandating that social security money go towards only social security and funding individual accounts that way, it’s a another thing that you’ll see disappear out of your paycheck and have absolutely no control over.
I have to say, though, don’t dismiss the idea entirely since there are some good things to take out of this. They should take the idea of an individual account and run with it, turning it into a “Universal 401K”. That way, when you switch employers, you don’t have to roll it over into an IRA or manage multiple retirement accounts. Also, they should mandate that employers have opt-out 401K’s rather than opt-in. Studies show that more people contribute when this is the case.
How would you make a universal 401K work without a government bureaucrat being in charge of it? Unless you can just make them portable, so the employer has to contribute to your account, which is managed by the 401k provider of your choice.