By Skip Chatterson - October 19, 2010
Liberal Democrats like Social Security, but are not fans of 401K’s for the American people. Why? 401K’s cost the Treasury $51 billion in 2009. Add in the break for IRAs, which are largely funded by 401(k) rollovers, and its $63 billion. In other words, we the American people get to keep nearly $63 billion of our own money, as well as matching money from our employer and that is just wrong! How dare you keep the money you earned? Don’t you know the government needs that money for more spending?
Given the rate of spending by our current President (It took America 214 years to create a debt of $3 trillion, from 1776 to 1990, it only took Obama 20 months to accomplish the same feat), administrators are trying to come up with creative ways to pay for Obama’s spending.
Bring in economist Teresa Ghilarducci of the New School for Social Research, who is testifying in front of congress as we speak. Ms. Ghilarducci proposes a mandatory national savings account on top of Social Security. You’d kick in 2.5% a year and your employer another 2.5%. In one version, the tax credit would be a flat $600 a year for everybody, (WOW!!). Ms. Ghilarducci would also like to see the American people turn their current 401K’s into this new government retirement scheme, in exchange for that generous $600/yr. tax credit. Here is a bold statement you will never hear her say….”congress should control spending.”
This scheme is like the guarantee from the other government retirement ponzee scheme….Social Security. Social Security is doing so well that its…well…BROKE! Gosh, given the ability of the government to manage money so well, let me sign up now! The government is hemorrhaging money and an amputation would be preferably to a band-aid.
If this isn’t scary enough, listen to an interview with Teresa Ghilarducci did with radio host “the Great One” Mark Levin. Haunted houses aren’t as scary as this interview, click below.