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Nov 30 2012

Here Come the Looters for Your Retirement Account

Since reducing the federal government’s massive wasteful spending is out of the question with a socialist in the White House, our rulers need to look for new ways to squeeze money out of us if they are to stave off national bankruptcy. Willie Sutton supposedly said he robbed banks because “that’s where the money is.” Much of our money is in our IRA and 401(k) retirement accounts. Therefore, the Obama-affiliated establishment media has been making the case for looting them. From Slime magazine:

To maintain this savings incentive the government “spends” [i.e., delays the theft of] $100 billion a year in the form of tax breaks to those who stash money in these kinds of accounts. Now, a new study suggests this tax incentive does little to change saving behavior. Some lawmakers, no doubt, are wondering: Why keep an expensive tax incentive that does not incent?

The study, reported in The New York Times [the quasi-official mouthpiece of the Obama regime], comes from Raj Chetty and John N. Friedman of Harvard, Soren Leth-Petersen and Tore Olsen of the University of Copenhagen, and Torben Heien Nielsen of the Danish National Center for Social Research. It looked at data from Denmark, where the pension system is similar to that in the U.S., and found that every dollar that government spent on tax breaks increased total savings by about one penny.

That’s not much of a payoff. Meanwhile, the Tax Policy Center in Washington has found that about 80% of retirement savings benefits flow to the top 20% of earners. Eliminating the deduction for retirement savings would hit the well-off disproportionately, a condition with a lot of appeal in the current political climate.

That is, a climate dominated by Marxist demagogues like Obama.

Taxing IRAs won’t even pay for Obama’s “stimulus” bills. To steal enough money to put off economic collapse until after 2016, they will have to seize our retirement accounts outright. Unlike meaningful spending cuts, that is very much on the table.

obama-money
It will never be enough.

On a tip from Ghost of FA Hayek.

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  • http://www.brycchancarey.com/abolition/wilberforce.htm Wilberforce

    Was thinking about this yesterday. It SHOULD be the last straw. Or so you’d think…

  • Jim

    Call it what it is – government greed.

  • Jimbo

    I’ve said it over and over and over again.

    LIBERALS ARE STINKING THIEVES.

    Making theft ‘legal’ does not make it moral.

    Go to hell, liberals.

  • Winston Smith

    Dont bother with Roth IRA/401K since at any time they want the gubment can change the rules and start taxing withdrawals taxing it both going in and coming out. With regular 401L andd IRAs you save the money immediately via tax deductions. The only way they could get at that would be to retroactively tax the money going into 401Ks.

  • Dr. 9
  • Rotohammer

    I’ve observed that people are inclined to breath whether the air is clean or polluted, so why all the expensive pollution controls? For every dollar spent on clean air, breathing is increased by 0.0%.

  • Charlotte

    I have been thinking seriously that it might be prudent to just take out ALL of my money in my 401K’s. Take all the tax and penalties, but at least I would have PART of the money I have saved for so long.

    This government is NOTHING except a bunch of theives who are beyond disgusting. What a bunch of political WHORES.

    Why in the world do anything to save or plan for the future? The dolts in DC will take everything we have. It is obvious. They have to “tax” everything. They will take us for EVERYTHING we have.

    NO ONE is safe.

  • Rotohammer

    I hear you, Winston. I’ve been thinking the same thing – they may come after the 401k and Roth IRAs. Most likely they will just phase out further participation, or lower the income threshold on Roths to the point where only the people who have no income qualify. If they ever tax one penny of my Roth IRAs, it will be time to take up arms.

    I love how when we get to keep more of our own money, it’s referred to as “government spending”. The government’s sense of entitlement to our money is stunning.

  • http://www.christianitytoday.com/ch/131christians/activists/wilberforce.html Wilberforce

    Socialism = Theft.

    Always will be.

  • Comrade J

    If anyone is wondering why they are coming for (gasp) middle class’s money, look at the numbers below:

    2012 Obama’s deficit (best case scenario)
    $1,100,000,000,000

    Taxing “rich” – Buffet rule (1 year)
    $4,700,000,000

    The difference is a modest factor of … 234. That is you have to take the Buffet rule times 234.

  • Rotohammer

    The irony is that with Social Security in peril, the government should be even more motivated to inspire people to save. If this dubious study is correct in claiming that the tax incentives to save for retirement aren’t working, then the solution is to try harder. Provide more incentives.

    Economic stimulus hasn’t worked and never will, yet the Democrats won’t give up on it. One dopey study on tax incentives claims they don’t promote saving and we’re supposed to just give up.

  • Dr. 9

    Is Obama a socialist? Actually, in case the fools who voted for him didn’t know, he’s a Marxist.

    http://www.cnbc.com/id/50022833

  • Ummah Gummah

    Charlotte says:
    November 30, 2012 at 10:46 am
    I have been thinking seriously that it might be prudent to just take out ALL of my money in my 401K’s. Take all the tax and penalties, but at least I would have PART of the money I have saved for so long.

    Did just that in 2007 in anticipation of a RAT victory. Seems like it was a wise decision…

    .

  • A. Levy

    In the event you didn’t know why the Muslim-in-Chief called for the overthrow of the leaders of Egypt, Lybia, and now Syria, here’s the reason. He was making room for his bothers in the Muslim Brotherhood to move in and install Sharia Law. And that’s exactly what they did.

    I’m sure the MSM, and most of the his other Kool-Aid gulping supporters will think that was just a coincidence.

    http://www.aljazeera.com/news/middleeast/2012/11/20121129182338884288.html

  • Mr Evilwrench

    Cashed in my 401K earlier this year, not that there was much in it, but I can absorb the tax since I basically have no “taxable income” anyway. Plus the dumbass running it was losing me a little a year anyway, so to hell with it all. I’ll stay with the stocks and bonds under my own direction.

  • http://beerbarrel.net tricknologist

    According to the Time article at the link, there is about $10T tied up in 401k’s and IRA’s. How long do you think it will take Obama to burn through that if he confiscates them outright ?

    I give it a couple of years, three max. Then he’s going to be on the hunt for another source of revenue.

  • Sam Adams

    Dr. 9 says:
    November 30, 2012 at 11:31 am

    Is Obama a socialist? Actually, in case the fools who voted for him didn’t know, he’s a Marxist.
    __________________
    Pravda, the former publicity organ for the Soviet Communist party called Obama a communist this past week. I’m thinking that the folks at Pravda know a communist when they see one.

  • sven

    Get out of cash and into gold. I keep my gold in my safe right next to my lead, so come and get it.

  • Pingback: Here Come the Looters for Your Retirement Account | Socialism is not the Answer

  • Room101

    “I have been thinking seriously that it might be prudent to just take out ALL of my money in my 401K’s. Take all the tax and penalties, but at least I would have PART of the money I have saved for so long.

    This government is NOTHING except a bunch of theives who are beyond disgusting. What a bunch of political WHORES.

    Why in the world do anything to save or plan for the future? The dolts in DC will take everything we have. It is obvious. They have to “tax” everything. They will take us for EVERYTHING we have.

    NO ONE is safe.”

    Very well said.

    I don’t give a dime in charity to areas infested with Obama-voters.

    They’re using the power and coercion of Government to steal from the productive to subsidize the less-than-worthless.

    It’s the un-American Way.

  • Room101

    tricknologist says:
    November 30, 2012 at 4:01 pm

    According to the Time article at the link, there is about $10T tied up in 401k’s and IRA’s. How long do you think it will take Obama to burn through that if he confiscates them outright ?

    There is increasing mainstream talk how the Government will take all private assets into ‘safekeeping’ or other such BS.

    They mean to steal, rob, and rape us blind, then put us down in old age.

    These people are evil.

  • Room101

    The crowning achievement of Obamacare will be old white people/taxpayers shipped-off to government correctional facilities.

    Surely by then the Left will have succeeded in banning any reference to Martin Luther King’s 1963 “I Have a Dream” speech in Washington.

    The Left has completely discredited Dr. King’s outmoded ideas about society way back then, 1963.

    Today’s Government is all about punishing and taxing people based not on the content of their character, but the mere color of their white skin.

  • CrazyFrog

    This is why part of my savings plan consists of guns, bullets and scotch whiskey.

  • Alfred McGuffin

    The government is the only one that allows itself the privileges of running a Ponzi Scheme (Social Security), and to make unilateral contract changes. Changing the retirement age for programs is just wrong. When I started working and my wages were subject to the Social Security tax, the retirement age was 65. Now it’s 67. What will it be when the robber barons negotiate a cliff settlement? How fair is that? Those of us that have been responsibly planning under a set of assumptions don’t deserve to have the boat changed on us in mid stream!

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