If youve been a long-time listener to the Boortz Show youve heard me warn of the possibility of the Imperial Federal Government stepping in to seize a portion of your retirement funds. Back in 1993 just such an idea was being studied by those in the Clinton White House. One of Clintons advisors, a woman named Alicia Munnell, was proposing a one-time 15% tax on the outstanding balance of all pension, 401K and retirement plans. The purpose here was to even the playing field between those who were fortunate enough to have these private pension plans, and those who did not. What happened to the idea? It was killed by the 1994 voter revolution.
That was then .. this is now .. and once again I sense that the Democrats are sniffing around your retirement plans. And why not? There are over $3 trillion dollars out there in private retirement accounts. That is three thousand billion dollars .. and you dont think the Democrats get wet when they think of all of this money? All they have to do is figure out a way to get their hands on it!
It looks to me like the Obama administration is starting to eye your retirement. As of right now, it might look relatively harmless . but the Obama et al are weighing how the government can encourage workers to turn their savings into guaranteed income streams. Call me paranoid, but this looks to me like just the opening shot of what will become an attempt by the government to seize your retirement funds. How could they make this work? They would tell you that something needs to be done to make sure that you have a guaranteed income stream throughout your retirement years. They begin with language like encouraging workers. Soon it turns into requiring workers. Before you know it, they have complete control. Oh yeah theyll have all the excuses ready to go. Try this: We need to make sure that all Americans have a comfortable retirement. We also need to make sure that Americans dont take untoward risks with their retirement funds that could leave them destitute. So, we think it would be best if the government just took control of these funds, invested them and then doled them out to working Americans when they reached retirement age. America will be made stronger by a strong and secure retired class. We will all be better off when our senior citizens can live a life without fear of financial disaster.
Cant you hear it coming?
As soon as next week, the Department of Labor and the Treasury will take public comment on ways to promote the idea converting 401(k) savings and IRAs into annuities or other steady payment streams. Assistant Labor Secretary Phyllis C. Borzi says that there is a tremendous amount of interest in the White House in retirement-security initiatives. I bet there is.
Look, folks this is just the beginning. Ive been warning you for years that the government will go to any lengths to get a hold of more of your money. Retirement savings are a huge target that cant be ignored.
You may think that I am blowing smoke, but the chairman of the House Committee on Education and Labor Rep. George Miller has said that sweeping changes are coming to the 401(k) system. Part of a plan presented to his committee by a woman by the name of Teresa Ghilarducci included confiscating workers personal retirement accounts and converting them into accounts managed by the Social Security Administration.
You think this cant happen? You wonder how in the world the government could ever come seize your property and then put it in a common pool for redistribution? Ask your child what happened to all of their school supplies at the beginning of this school year. Better yet read the Kelo vs. New London decision from the U.S. Supreme Court. In Kelo the court said that it would be OK if government seized private property and handed it to another private individual, just so long as the government could show that government tax revenue could be enhanced by the transaction. You just had to show some public purpose. Enhanced tax revenue did the trick. OK well why wouldnt the argument that our country would be better off with a stable retirement system that took care of everyone, instead of allowing the privileged rich to have their gold-plated retirement plans? You think the Supremes would throw that one out? Yeah right. Good luck with that one.