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.House Democrats Contemplate Abolishing 401(k) Tax Breaks, WorkForce Management, 10/16/2008
Yep, it just hurts the Democrat plans to redistribute wealth to their constituents too much! However...
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...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....(Absolish 401(k) tax breaks, con'td)
Yep, instead of voluntarily contributing money for property that you have control over, you will be required to contribute a fixed amount. Mandatory volunteerism, anybody?
“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....”
Trust a professor from a hard left institution like the New School for Social Research to dictate her terms for how other people should invest.
This is what you're looking forward to?