Dems Target Private Retirement Accounts
Does anyone have a feel as to the possibility of the points made in this article that appeared recently in the Carolina Journal really happening?
http://www.carolinajournal.com/exclusives/dems-target-private-retirement…
(Full Article)
Carolina Journal Exclusives
Dems Target Private Retirement Accounts
Democratic leaders in the U.S. House discuss confiscating 401(k)s, IRAs
By Karen McMahan
November 04, 2008
RALEIGH — 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.
Permalink Submitted by Al Fry on Mon, 2008-11-10 16:10
Any drastic moves by the Dems, incuding President BHO, would probably seal their doom for re-election. That is not one of their objectives. Their # 1 priority is to get reelected.
Permalink Submitted by Jose Morales on Mon, 2008-11-10 17:08
There was a lot of talk regarding RSAs during the Bush Jr. Presidency and their was never any follow through. I don’t think we will see any quick “confiscation” of retirement accounts and if we do it certainly won’t happen quietly.
Permalink Submitted by Alan Spross on Mon, 2008-11-10 17:56
A typical reaction in a crisis, when there is no easy solution to the causes of the crisis, is to start treating the symptoms.
Retirement saving is basically reserving assets for later life expenses, both known and unknown. Many people do a good job, many do a terrible job and are totally undisciplined. Unfortuneately, the government clearly falls into the latter category, along with exhibiting a penchant for producing remarkable failures in basic regulation.