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  1. #1 A Wide Range of Sweeping Changes to The 401(k) System Were Proposed 
    An Adversary of Linda #'s
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    Congress mulls major 401(k) changes

    "Grab your socks here comes the latest Progressive Democrats screw job !":eek:

    A wide range of sweeping changes to the 401(k) system were proposed Tuesday at a hearing on how the market crisis has devastated retirement savings plans.
    Chief among them was eliminating $80 billion in tax savings for higher-income people enrolled in 401(k) retirement savings plans.

    This was suggested by the chairman of the House Committee on Education and Labor.U.S. Rep. George Miller (D-CA), the chairman of the House Education and Labor Committee,

    “With respect to the 401(k), it appears to be a plan that is not really well-devised for the changes in the market,” Rep. George Miller, D-Calif., said.

    “We’ve invested $80 billion into subsidizing this activity,” he said, referring to tax breaks allowed for 401(k) contributions and savings.

    With savings rates going down, “what do we have to start to think about in Congress of whether or not we want to continue and invest that $80 billion for a policy that is not generating what we … say it should?” Mr. Miller said.

    Congress should let workers trade their 401(k) assets for guaranteed retirement accounts made up of government bonds, suggested Teresa Ghilarducci, an economics professor at The New School for Social Research in New York.

    When workers collected Social Security, the guaranteed retirement account would pay an inflation-adjusted annuity under her plan.

    “The way the government now encourages 401(k) plans is to spend $80 billion in tax breaks,” which goes to the highest-income earners, Ms. Ghilarducci said.

    That simply results in transferring money from taxed savings accounts to untaxed accounts, she said.

    “If we implement automatic [individual retirement accounts] or if we expand the 401(k) system, all we’re doing is adding to this inefficiency,” Ms. Ghilarducci said.

    Rep. Robert Andrews, D-N.J., raised the issue of which investment advisers are allowed to offer workers investment advice.

    The Department of Labor is considering “loopholes” that would allow advisers to offer “conflicted investment advice if the advisers work for subsidiaries of financial services companies that sell the investments,” he said.

    With American workers facing $2 trillion in losses from retirement plans over the past year and Democrats expected to gain seats in the House and the Senate, actions being contemplated by the committee are an important harbinger of what could come out of Congress next year.


    http://www.investmentnews.com/apps/p.../REG/810079894
    Comments:

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    The Dems' schemes to raise taxes on the Middle Class will come from all angles. I'm just waiting for the Roth IRA's to be declared ''an unfair loophole for the wealthy''.
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    I believe this Congress and especially the Obammunist are dead set on making sure the a huge swath of the productive people in this country can never retire.
    And they say slavery is dead.
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    All 401 and Roth money will be seized to save Social Security.
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    FTA:
    Congress should let workers trade their 401(k) assets for guaranteed retirement accounts made up of government bonds, suggested Teresa Ghilarducci, an economics professor at The New School for Social Research in New York.

    Just like Soc. Sec. The government collects the money, immediatly spends it, and then when people are ready to collect, we're told, "the system is going broke, and higher taxes are needed.
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    Changing Jackasses a-mid stream is an old Dog'n'Jackass show trick and used flawlessly and expertly by the 'Rat-finks. they'll also more than likely make the taxes retro-active so those that did manage to priorly slip through and retire will get pummeled and taxed heavy. How else are they going to pay for Obie's Marxist regime's sordid socialist skulduggery? If they gain control all houses of government there'll be nothing stopping'em....nothing except armed revolution.
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    Where does he get off thinking our money is his?
    This will really help the markets go the direction the Democrats want which is down.
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    I recall an interview I saw with ,I belive his name is Markey.A house member from Mass. In the interview he made it quite clear that after the 08 election,Democrats will begin working on all types of legislation like this. He also stated the Dems goal was to include means testing your social security benefits.He was interviewd almost two years ago.I was stunned by his belief the Dems would sweep in 08.The story didn't get much play.Put a tin foil hat on me,but why did he have such confidence about the outcome of the election two years ago?
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  2. #2  
    Patent Member
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    Quote Originally Posted by megimoo View Post
    “We’ve invested $80 billion into subsidizing this activity,” he said, referring to tax breaks allowed for 401(k) contributions and savings.
    Why am I not surprised that a Congressman doesn't understand how 401(k) plans work?
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