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alstry (< 20)

Your Uncle wants your IRA/401K



November 10, 2008 – Comments (14)

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.

Some CAPs players think I am a bit extreme......but never close to this as reported in the Carolina Journal.

Don't say Alstry is not covering your backside.  Now time to look forward.

14 Comments – Post Your Own

#1) On November 10, 2008 at 6:10 PM, jegr5347 (< 20) wrote:

Can they take my mortgage, car loan and credit card balances too?

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#2) On November 10, 2008 at 6:46 PM, motleyanimal (38.35) wrote:

Good Gawd! The government wants to manage my money!

That's like hiring Hannibal Lector to manage a restaurant.

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#3) On November 10, 2008 at 6:54 PM, oldfashionedway (34.25) wrote:

FDR and gold, now BHO and retirement accounts...

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#4) On November 10, 2008 at 7:01 PM, motleyanimal (38.35) wrote:

But then I found this:

The GRAs would be voluntary and no accounts would be confiscated. But the tax break for 401ks and IRAs would be eliminated.

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#5) On November 10, 2008 at 7:24 PM, EScroogeJr (< 20) wrote:

I support eliminating tax breaks for 401Ks (but not confiscation). In a rational economy, everything should be in balance, with no one part sticking out. There is no reason to keep artificial incentives for investing in stocks, housing, or whatever. Besides, in economics, there is no such thing as a free lunch, and in order to give tax breaks to 401'ers, homedebtors, or any other group, you have to hike the overall tax rates.

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#6) On November 10, 2008 at 7:57 PM, leohaas (29.78) wrote:

Keep on spreading the misinformation!

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#7) On November 10, 2008 at 8:33 PM, columbia1 wrote:

Here is the article, redistribution of wealth is what this is all about!  Good find :)

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#8) On November 10, 2008 at 10:16 PM, Ph1sh55 (29.21) wrote:

columbia1, I suggest you read the earlier linked:

which exposes the carolina journal article as regurgitated sludge

RIP research

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#9) On November 10, 2008 at 10:52 PM, biotechmgr (< 20) wrote:

Robert Prechter has also warned of this. Uncle Sam would not be first gov to nationalize personal assets. It is a time to watch and be wary.

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#10) On November 11, 2008 at 12:44 AM, lquadland10 (< 20) wrote:

Don't Tread On Me. and over my cold dead body. US Taxpayers are Violated - the Looting Operation Co...
by JGus (< 20) November 10, 9:28 PM

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#11) On November 11, 2008 at 10:29 AM, russiangambit (28.91) wrote:

I heard the proposal. But my understanding is that the conversion from 401K to a guaranteed account would be voluntary.

401K is a fraud anyway. Nobody is going to retire on their 401Ks. IRAs are a bit better due to more choices and thanks to ultra-short ETFs.

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#12) On November 11, 2008 at 6:32 PM, biotechmgr (< 20) wrote:

 Here is the actual testimony. It sounds voluntary, not confiscating as the article asserts.

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#13) On November 11, 2008 at 6:40 PM, alstry (< 20) wrote:

I agree.  That is what my commentary implied.

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#14) On November 19, 2008 at 3:03 PM, garyc27 (< 20) wrote:

I get nervous when the Government wants to keep me from harming myself.  What worries me even more is the possibility of the yokels in Congress deciding how my money will be allocated.  I wonder why the testimony is from Teresa Ghilarducci and they didn't ask for input from Nouriel Roubini.

My second concern is that if there are enough people who volunteer to participate, it could very well become LAW that we all participate.

These folks can't manage Social Security and Medicaid/Medicate effecitvely.

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