Democrats Want t To Abolish 401k Plans

We can not allow this-Know who you are voting for!
October 22nd, 2008 by Eye Doc
Yes, that’s correct. The Democratic Party, which constantly claims to be the party of the working and middle classes, wants to abolish 401k plans and force you instead to contribute to a mandatory government run retirement plan which will pay a paltry 3% a year adjusted for inflation.
Powerful House Democrats are eyeing proposals to overhaul the nation’s $3 trillion 401(k) system, including the elimination of most of the $80 billion in annual tax breaks that 401(k) investors receive.
House Education and Labor Committee Chairman George Miller, D-California, and Rep. Jim McDermott, D-Washington, chairman of the House Ways and Means Committee’s Subcommittee on Income Security and Family Support, are looking at redirecting those tax breaks to a new system of guaranteed retirement accounts to which all workers would be obliged to contribute.
A plan by Teresa Ghilarducci, professor of economic-policy analysis at the New School for Social Research in New York, contains elements that are being considered. She testified last week before Miller’s Education and Labor Committee on her proposal.
At that hearing, the director of the Congressional Budget Office, Peter Orszag, testified that some $2 trillion in retirement savings has been lost over the past 15 months.
Under Ghilarducci’s plan, all workers would receive a $600 annual inflation-adjusted subsidy from the U.S. government but would be required to invest 5 percent of their pay into a guaranteed retirement account administered by the Social Security Administration. The money in turn would be invested in special government bonds that would pay 3 percent a year, adjusted for inflation.
The current system of providing tax breaks on 401(k) contributions and earnings would be eliminated.
“I want to stop the federal subsidy of 401(k)s,” Ghilarducci said in an interview. “401(k)s can continue to exist, but they won’t have the benefit of the subsidy of the tax break.”
Without the tax deduction there’s not much point in having a 401k plan unless there’s a good employer match for the contributions that the employee makes, so the majority of these plans will just cease to exist. This is all just another good example of why we can’t elect Democrats. They believe the government should run every aspect of your life.