Most Popular
1. THE INFLATION MONSTER is Forecasting RECESSION - Nadeem_Walayat
2.Why APPLE Could CRASH the Stock Market! - Nadeem_Walayat
3.The Stocks Stealth BEAR Market - Nadeem_Walayat
4.Inflation, Commodities and Interest Rates : Paradigm Shifts in Macrotrends - Rambus_Chartology
5.Stock Market in the Eye of the Storm, Visualising AI Tech Stocks Buying Levels - Nadeem_Walayat
6.AI Tech Stocks Earnings BloodBath Buying Opportunity - Nadeem_Walayat
7.PPT HALTS STOCK MARKET CRASH ahead of Fed May Interest Rate Hike Meeting - Nadeem_Walayat
8.50 Small Cap Growth Stocks Analysis to CAPITALISE on the Stock Market Inflation -Nadeem_Walayat
9.WE HAVE NO CHOICE BUT TO INVEST IN STOCKS AND HOUSING MARKET - Nadeem_Walayat
10.Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - Nadeem_Walayat
Last 7 days
UK House Prices - Lets Get Jiggy With UK INTEREST RATES - 28th June 22
GOLD STOCKS ARE WORSE THAN GOLD - 28th June 22
This “Bizarre” Chart is Wrecking the Stock Market - 28th June 22
Recession Question Answered - 28th June 22
Technical Analysis: Why You Should Expect a Popularity Surge - 28th June 22
Have US Bonds Bottomed? - 27th June 22
Gold Junior Miners: A Bearish Push Is Coming to Move Them Lower - 27th June 22
Stock Market Watching Out - 27th June 22
The NEXT BIG EMPIRE WILL BE..... CANZUK - 25th June 22
Who (or What) Is Really in Charge of Bitcoin's Price Swings? - 25th June 22
Crude Oil Price Forecast - Trend Breaks Downward – Rejecting The $120 Level - 25th June 22
Everyone and their Grandma is Expecting a Big Stocks Bear Market Rally - 23rd June 22
The Fed’s Hawkish Bite Left Its Mark on the S&P 500 Stocks - 23rd June 22
No Dodging the Stock Market Bullet - 23rd June 22
How To Set Up A Business To Better Manage In The Free Market - 23rd June 22
Why Are Precious Metals Considered A Good Investment? Find Out Here - 23rd June 22
UK House Prices and the Inflation Mega-trend - 22nd June 22
Sportsbook Betting Reviews: How to Choose a Sportsbook- 22nd June 22
Looking to buy Cannabis Stocks? - 22nd June 22
UK House Prices Momentum Forecast - 21st June 22
The Fed is Incompetent - Beware the Dancing Market Puppet - 21st June 22
US Economy Headed for a Hard Landing - 21st June 22
How to Invest in EU - New Opportunities Uncovered - 21st June 22
How To Protect Your Assets During Inflation - 21st June 22
AI Tech Stocks Current State, Is AMAZON a Dying Tech Giant? - 20th June 22
Gold/Gold miners fundamental checkup - 20th June 22
Personal Finance Tips: How To Get Out Of A Tough Financial Situation - 20th June 22
UK House Prices Relative to GDP Growth - 19th June 22
Will Global Markets Be Pushed Deeper Into Crisis Event By The US Fed? - 19th June 22
Useful Things You Need To Know About Tweezer Top Candlestick Pattern - 19th June 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The US Government is Going After Your Retirement Funds...

Politics / US Politics Sep 18, 2011 - 10:01 AM GMT

By: Bob_Chapman

Politics

We have warned subscribers and listeners and those on the Internet over and over again that government was going to come after your private retirement funds including 401K’s and IRA’s that hold $6.6 trillion in investments.

This past week in a grand deficit cutting bargain the Senate Finance Committee explored “Tax Reform Options Promoting Retirement Security.” The excuse is to make 401K plans more efficient; to keep Social Security afloat and to switch funds from these retirement plans to be used elsewhere by government. It is called a looting procedure.


The idea is to replace the 401K with a tax break that would allow government to offer bigger benefits to low earners and changes in withdrawal choices at retirement. It would include a change in the way Social Security benefits are calculated to reduce eventual payout and subsidize the poor via a government guaranteed annuity. There would also be an increase in the retirement age. This approach is similar to something you would find in the communist manifesto. Take from the bigger producers to subsidize the lesser producers. Each according to his ability and each according to his means.

We are told Social Security will be out of funds in 2036, which is untrue and the Congress does not mention that the trust fund has been looted since June of 1935. All that is left are worthless bonds. T

hose that read the Act will find that if government does not have the funds for Social Security they must sell bonds to fund any shortfalls. This fact is, of course, ignored by the Congress and the person who calls himself president. They are more interested in loophole-closing rate-lowering tax reform, which are code words to cut current Social Security income and transfer those funds to other pet socialist projects, that government deems more important. The Congress could care less that you paid taxes for a lifetime for this payout, and it is not a benefit, because you paid for it, and have your benefits shifted to those on lower income brackets or to pet socialist projects. What upsets the government is that the tax break for defined contribution retirement plans is that it will cost the Treasury $212.2 billion between 2010 and 2014. What really galls them is that 80% of the payout goes to the top 20% of earners and they want those funds to be redistributed to the less fortunate, to offset debt or to be applied in other socialized areas. One of the proposals is to roll back the current $16,500 annual 401K tax deferred contribution to a level of $10,500. If this is followed government would capture $450 billion in additional tax revenue, and low-income workers would not be affected. We suggest congress change the law and tax the $2.2 trillion parked offshore in tax havens at 35% and bring in revenue of $800 billion or more and to keep that revenue stream going. That means only $1 trillion would have to be cut from military spending and we’d have a balanced budget. That would be just too simple and it might upset the transnational conglomerates and the military industrial complex.

Needless to say, Americans would stop saving conventionally and purchase gold and silver related assets that have appreciated more than 20% annually for the past 11-1/2 years. These changes would render 401Ks and IRAs redundant. The incentive would be gone and all those funds might not be available to the government for redistribution to low-income citizens.

The bottom line is the government wants your retirement and more taxes. Private annuities could face insurance company collapse if the Dow went to 3 or 4,000 and of course the government is insolvent. For current retirees there has been no COLA increase as inflation has ranged from 5% to 11.2% and by the looks of it the CPI will be rigged lower again, so there never will be an adjustment in payout. The latest is a chained CPI, which would further lower benefits.

This is the brave new world planned by your masters. You people should smarten up and dump your retirement plans now. Stop being seduced by the tax breaks or shelter and run your own savings away from the clutches of government. If you don’t you could end up losing it all.

Theinternationalforcaster.com

Global Research Articles by Bob Chapman

© Copyright Bob Chapman , Global Research, 2011

Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Centre for Research on Globalization. The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible or liable for any inaccurate or incorrect statements contained in this article.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Jerry
19 Sep 11, 02:19
The US Government is Going After Your Retirement Funds...

Your comments remind me of a man I read about about a year ago. He was going to a board meeting in his private jet eating from his gold ringed china plate with his gold plated eating utensils. For some reason, Dante's Inferno came to mind. He thought one of those rings in hell are being held for me for the way I neglected the poor...it frightened him so much that he became involved in setting up free medical clinics for the poor in America so they could get ome medical care. He says he is now at peace with himself....His response was the right one.....In the Bible it says, when I was hungry you fed me, when I was thirsty you gave me a drink, when I needed clothing, you clothed me....those who heard told God they did not remember doing these things for Him....He replied when you did these things for the least among you, you did them to me.....It is important to remember our lives are merely vapor in the wind but our actions will last FOREVER....I'll pray for you and me tonight, that we might see what truly matters during our brief lives..


Post Comment

Only logged in users are allowed to post comments. Register/ Log in