Does Carol Shea Porter want your 401K?
Friday, October 24, 2008 at 01:25PM Coming today from Rush Limbaugh, I heard that House Democrat George Miller has suggested that 401K tax deductions may be on their way out because the government needs to find more revenue sources. (I’m Paraphrasing) Well isn’t that just great.
It occurs to me that Carol Shea Porter holds a seat on the House Education and Labor Committee from which Miller offers us this wisdom, a committee that brought us card-check, and the new minimum wage increases—all (I beleive) the brain child of George Miller.
This committee has apparently been collecting data and inspiration on a proposal to demolish private 401K’s and replace them with a government controlled system to be administered by the Social Security Administration.
The plan would end private retirement accounts. The government plan would require you to invest 5% of your annual income—most likely deducted from your paycheck by the government—and they would invest it in federal bonds with a guarantee of a 3% return.
In short, the government would assume control of new and existing 401K’s, removing billions of dollars of investment and growth potential from the decision making process of millions of private investors, and give it all to the Federal government. They would end your tax deduction for contributions into a retirement account. (Allowing them to tax you more). They would define how it will be invested (Governmetn Bonds), and the rate of return you would receive.
And, most importantly, the payments to retired persons—the MASSIVE 3% growth--would have to be funded entirely from the tax dollars of every working American. (No mention of how this puts even more pressure on trillions of dollars in existing unfunded entitlements we but why dicker over the particulars. This is socialism people—we’re just supposed to nod our heads and say thank you.)
The European model for this has failed miserably, as declining populations of workers, and increasing populations of those ‘on-the-dole’ are bankrupting their system. These governments will forcibly impoverish entire generations who failed to see the long term consequences of relying on a system that cannot sustain itself without an exponentially larger population in each succeeding generation to fund it.
So you might want to find out if Carol Shea-Porter, who sits on the committee that will give birth to this disaster and who has accepted some serious campaign cash from George Millers Political Action Committee this campaign season, if she supports the socialization of your retirement funds and the end of private 401k’s.
If she can’t give you a straight answer call it a yes, remembering that any kind of sustained Democrat majority, with a potential Democrat President, WILL ram through every piece of socialist garbage they can in 2009-2010. Are you prepared to give up yet another freedom to the government so they can screw you some more? Ask Carol where she stands and vote accordingly.
Reader Comments (13)
There is no such "free lunch". If you are getting something (money) from a government source, then someone else is paying for it.
If you are not the one getting something, then you are paying for someone else to do so.
There is an old proverb that says, "Give a man a fish and you feed him for one day. Teach him how to fish, and he can feed himself (and his family) for the rest of his life.
Guess which of the above the liberal, socialist leaning Democrats favor? By giving someone a fish a day, they create an artifical dependency cycle that will perpetuate itself endlessly.
If they teach someone how to fish, that individual may be so selfish as to want to keep what they have earned, instead of, in the words of Barack Hussein Obama,
"spreading the wealth around"
Baloney!
Same tired worn out fear tactics I've heard since the day I was born.
Get a life.
When NH falls, you know the rest of the country is doomed.
The Dems plan to tax the 'rich' which is not their own elitists pukes but us poor slobs in the middle class.
The way to fix deficits is, to spend more! Yeah! That's the ticket.
It is just too scary the dumb public falls for this DemoMarxist horrific bull.
Chaz never has any facts, just slaps his forehead in amazement.
Chaz, that's the kind of division we've had for eight years. You're right in your response. People won't be fooled though -- we'll see some good positive changes after November 4th, and we'll rebuild America the way our Constitutional Fathers wanted it to be.
It will be an America that is strong and indivualistic. And we'll have Americans in the next few years caring about our neighbors and our fellow Americans by having a fair tax system and opportunities that encourage everyone to prosper, but with regulations on Wall Street so that the powers-who-be won't be able to rip off the rest of us. We as Americans deserve to keep our hard earned money and not let the CEOs, corporations, and money barons take it from us.
Barack Obama is the real maverick of this election. He's bringing real change, not pretend. Positive Change, For America's Future!
Did you have something substantive, or is 'scare tactics' and Jim's psychodelic journey into the big "O" the best you can do?
I've been writing for five years. I've responded to ignorant rants and comments with plenty of facts.
But...
With the most important election of our lives coming up, I'm not wasting my time any more.
Just read what Observer writes. He's a classic hating coward. No name, just vilent rhetoric.
Elsewhere on this site we have a Republican writing a disgusting potty mouthed rant in one column and then urging peole to trust in God in another.
You guys no longer deserve serious comments.
Your question: Does Carol Shea-Porker want your 401-K?
WANT???
She NEEDS your 401-K because in 2016 Social Security PAYS OUT MORE THAN IT TAKES IN.
Then we will see first hand the miracle of socialism reveal itself in all its glory.
CNHT did a press release to our members in 2000 about Fannie and Freddie going belly up from unsecured loans. This information was passed to us from our like-minded groups in DC. It isn't rocket science.
We heard the same cluck, cluck from the same liberals about how it wouldn't happen.
Its the simple math of a PONZI scheme tossed into a pot of socialism.
If Obama wins he has to pay for all the votes he is buying with empty promises.
(Unless he is "tested" into a war somewhere. See Biden for those details.)
I can't say much about your last five years of writing. You may have made some brilliant and eloquent points--each and every one pearls before swine--but so far I can't point to much of anything from you (on my posts) other than "Nuh-uh!"
If you can't be botherd to back "nuh-uh" up with something of value aren't you relegating Chaz to the less gifted company whose time wasting you yourslf can no longer be bothered to respond to intelligently?
I'm only going to be here for nine more days.
During those nine days I'm focused on the election.
I've discussed the role of government for years here. Many discussions have been very interesting I think. to all involved.
Under different circumstances I would argue against your point, but right now, anything that starts off with Rush Limbaugh is off my radar screen.
Sorry if I was short, but I'm working on campaigns mainly, and writing in my spare moments.
Here's Miller in his own words on the subject. He's trying to protect workers and their savings but Rush of course turns that into a typical scare em rant.
Any way here it is:
This statement was made today by Chairman George Miller at the House Education and Labor Committee's hearing on the "Impact of the Financial Crisis on Workers' Retirement Security."
Good afternoon.
Last week, Congress approved an emergency rescue plan in response to the worst financial crisis our country has seen since the Great Depression. We know that this plan alone will not magically turn the economy around. But we are confident that without it we will not have the chance to move forward.
We insisted that the plan include strong protections for taxpayers and tough accountability - neither of which was included in the President's original request to Congress.
Immediately after the plan was approved, Speaker Pelosi announced that the House would conduct a series of hearings to investigate the causes of the current financial crisis and what steps we should take next to protect homeowners, workers and families struggling today.
As part of that commitment, the Committee on Education and Labor today is holding a hearing to explore how this financial crisis is impacting the retirement security of American families.
Yesterday, the House Oversight and Government Reform Committee launched the first of many oversight hearings examining the toxic mix of corporate greed, recklessness, and deregulation that created this financial crisis.
During his testimony, Lehman's CEO, Mr. Fuld, showed no remorse for his catastrophic mismanagement of the company. In fact, he repeatedly denied responsibility for running the storied Lehman Brothers investment house into financial oblivion.
He refused to admit that his own reckless management - and his industry's success of keeping regulators at bay - directly contributed to this historic financial crisis that is costing taxpayers, shareholders, and the nation's current and future retirees billions of dollars from their nest eggs.
All the while, he insisted on taking obscene multi-million dollar bonuses for his executive teammates.
Unlike Wall Street executives, American families don't have a golden parachute to fall back on.
It's clear that their retirement security may be one of the greatest casualties of this financial crisis.
The current financial and housing crises are stripping wealth from American families at a record rate.
A new poll just found that 63 percent of Americans are worried that they will not have enough savings for their retirement. Tragically, they may very well be right. Due to the collapse of the housing market and the financial crisis, trillions of dollars that Americans were counting on has been lost.
Americans were counting on much of this wealth for their retirement. Now it is gone - as is their ability to adequately fund their retirement.
Even before the current meltdown, middle-income families were losing ground due to the decline in middle-class wages over the last decade - making it harder for them to save for their retirement and family emergencies.
Retirement and financial experts now predict that retirees and older workers who rely on financial investments for retirement income may suffer more than any portion of the American population in the coming years.
According a survey released today by the AARP, one in five middle-aged workers stopped contributing to their retirement plans in the last year because they had trouble making ends meet. One in three workers has considered delaying retirement.
Now, the number of investors taking loans on their 401(k) accounts is increasing. And hardship withdrawals are also increasing.
T. Rowe Price estimates a 14 percent increase in hardship withdrawals just in the first eight months of 2008.
And, all the signs point to an increased frequency of 401(k) loans and hardship withdrawals in the coming year.
It makes sense that more Americans will be raiding their retirement accounts as they deal with rising unemployment and increasing costs of basic necessities.
Unfortunately, these drastic measures taken by workers today will have a long-lasting impact by significantly reducing account balances once these workers reach retirement age.
Over the past 12 months, more than a half trillion dollars have evaporated from 401(k) plans as a direct result of the crisis in the markets.
Some experts say that it will take as long as 3 years to recover market losses in 401(k)-style accounts - but only if the market turns around soon.
Just like consumer directed retirement plans, traditional pension plans are not immune from the financial crisis.
Although pension plans hire professional money managers and are required to be diversified, these plans will likely lose value as a result of the weak performance of the investment markets.
Sophisticated pension funds lost 20 to 30 percent of their value during the 2001 recession and took several years to overcome those losses.
We must keep our eye on these plans and I await further data on the health of our nation's pensions.
While this crisis began on Wall Street, much of the financial burden will ultimately be borne by Main Street. And this did not happen overnight.
With the Republicans' help and armed with their powerful lobbyists, Wall Street cunningly held off fair regulations by Congress, arguing that Americans would be better off if left to their own devices.
As Congress continues our investigations into this crisis, we cannot allow those responsible to emerge unscathed. The American people are paying the price of this go-go, Wild West approach to governing.
One cost will be the concern that our nation's workers will not have sufficient savings to ensure a secure retirement after a lifetime of hard work. In the coming months, this committee will examine what measures may be needed to ensure a safe and secure retirement for workers, retirees and their families.
For starters, we know that 401(k) holders lack critical information about how their money is managed and what fees they pay.
I'm here to say right now, those days are over.
We must have more transparency in 401(k) investment practices. The Wall Street veil of secrecy must end.
I would like to thank all of our witnesses for joining us today. I look forward to their testimony.
And I expect that we will be back here repeatedly until we can ensure greater security for the retirement of hard-working Americans.
I'll copy it off-line and take a look as soon as I get a few minutes.
I hope your last nine days here are good ones.
"During his testimony, Lehman's CEO, Mr. Fuld, showed no remorse for his catastrophic mismanagement of the company. In fact, he repeatedly denied responsibility for running the storied Lehman Brothers investment house into financial oblivion."
Congressperson Baaany Fwankfurter didn't show any remorse for the affirmative action home loan fiasco either.
What gives? We need more remorse.
"Congress let workers trade their 401(k) and 401(k) - type plan assets
(perhaps valued at mid-August prices) for a Guaranteed Retirement Account composed
of government bonds (earning a 3% return, adjusted for inflation). When the worker
collects Social Security, the Guaranteed Retirement Account will pay an inflation
adjusted annuity, based on the accumulated funds."
"Going forward, I propose Congress establish universal Guaranteed Retirement Accounts and the federal government deposit $600 (inflation indexed) in those Guaranteed Retirement Accounts every year for every worker."
"Every worker (not in an equivalent defined benefit plan) would save 5% of their pay into their Guaranteed Retirement Account to which the government pays a 3% inflation-indexed guaranteed return. Workers would earn pension credits based on these accumulations."
She goes on to wage war against 401K's, points out that the "Rich" are the only ones who really benefit...it's scary stuff.
I doesn't mean that's the plan, but it sings to a big goverment democrat--Buy me, Buy me!!
On the other side, despite an opening statement loaded with rhetoric, Miller at least poins out the obvious--that left to its own devices the market could rebound in as few as three years.
Becasue the market is driven almost entirely by perception, there is room to argue it could be sooner. There is also a good case to blame the current state on the excessive amount of pessimisim being doled out by the left and the media--clearly for political traction in an election year. In the absence of that, more stock holders might be inclined to hold, buy low, and use dollar cost averaging (which is what I am doing) to accrue greater profit long term. But it's hard too see the bottom when the predominate party in congress wont let off the negative pressure so until we stop hearing all the political attacks about the lousy economy, the bottom remains unclear.
I can't imagine this much doom and gloom if a Democrat is in the White House, and I'll bet a fortune that if Obama wins, on Novemner 5th the doom and gloom will be replaced by sunshine and happiness. It's a big game and a huge gamble. BY the same token if McCain pulls it out, the gloom will get worse--why give the other guy an advantage?
Anyway, Jerry Bramlett, CEO and Pres. of BenifitStreet Inc said a lot but he also said this.
"Let me emphasize, exchanging the equity investments in your retirement account for Treasury bills is not a sound long-term investment strategy and will subject retirees to substantial inflation risk. This also applies to participants who are nearing or entering retirement who will likely be managing retirement assets for some time – on the average another 15 years or so. Even these close-to-retirement employees can impair their long-term retirement assets by acting precipitously."
While I have plenty left to read, this--in my mind--kills Teresa's plan before it get's going, but Miller likes big government--as does his party, and if the conditions are ripe--filibuster proof senate and an Obama executive--they will sell this, buy it, and even gift wrap it as the best thing since single payer government run health care.
Another bad idea.