NorthWest Florida Republican

We already know that Social Security is just another tax. Congress uses it to supplement their spending programs. That is why it is insolvent and in danger of not being funded for future retirees. I honestly have no trust in having Social Security when it comes time for me to retire.

This is why IRA’s and 401(k)’s were invented. It is a way for people to save their money that is independent of the government meddling and spending.

Now, some democrats are looking at doing away with 401(k)’s.

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.”

Ed Morrissey has more on this over at Hot Air.

Did your read that?

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.

This means that Democrats are upset that Your Money is going into tax deferred accounts. Taxes that the Democrats can’t collect until later.

What do they want to do instead? Well, another Social Security program. On top of Social Security that is already there. We know how well Social Security is working. Do we really want the government to mandate and run another retirement savings program? Do we really trust them with our savings enough to let them do this? I know I don’t.

Many people put their money into 401(k)’s. Mostly because of the tax deferral and rate of return. Getting rid of the 401(k)’s is a bad idea but it is one that is getting serious consideration from Democrat leaders in congress.

Congressman Allen Boyd is one of those Democrat leaders. He often votes the party line even though he claims to be a conservative(Blue Dog) Democrat. Would he vote the party line on this if it came to a vote?