Wednesday, November 19, 2008

Dems to kill 401k plans?



I'm going to keep my writing to a respectful tone. However, I must admit, just reading about the democrats' future plans make me so incredibly angry. I'm almost at the end of my patience at the endless amount of absurdity that I see on campus coming from the left.

This is what makes me angry at the moment:

House Democrats recently invited Teresa Ghilarducci, a professor at the New School of Social Research, to testify before a subcommittee on her idea to eliminate the preferential tax treatment of the popular retirement plans. In place of 401(k) plans, she would have workers transfer their dough into government-created "guaranteed retirement accounts" for every worker. The government would deposit $600 (inflation indexed) every year into the GRAs. Each worker would also have to save 5 percent of pay into the accounts, to which the government would pay a measly 3 percent return. Rep. Jim McDermott, a Democrat from Washington and chairman of the House Ways and Means Committee's Subcommittee on Income Security and Family Support, said that since "the savings rate isn't going up for the investment of $80 billion [in 401(k) tax breaks], we have to start to think about whether or not we want to continue to invest that $80 billion for a policy that's not generating what we now say it should."



 I can see them doing something like this, too. We've become a third-rate nation like Argentina now.

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