As part of the Administration’s continuing drive to redistribute wealth, the National Seniors Council believes that tax-deferred contributions to retirement plans like 401(k)s and IRAs may very well be on the table in bipartisan budget negotiations going on right now between Congress and the White House.
NSC will vigorously oppose any such “compromise.”
Liberals in Washington have long maintained that the favorable tax treatment of such contributions is effectively a “subsidy” to people who can afford to save for retirement and is not only unfair but a significant cause of the current government debt crisis. Therefore, it is quite likely that some type of limitation on how much “wealthy” individuals will be allowed to save using these investment vehicles is being insisted on by the Administration.
Since President Obama first came into office his Administration has made no secret of its desire to overhaul the way Americans save for retirement. This new National Retirement System will force virtually all Americans into government-run Guaranteed Retirement Accounts and do away with private retirement accounts entirely. Congressional Democrats held hearings on this very issue in 2008, an alliance of labor unions and left-wing groups have founded Retirement USA, a non-profit lobbying group, and legislation limiting the ability of individuals to control their private savings is currently pending before Congress.
S. 1020, the Savings Enhancement by Alleviating Leakage in 401(k)Savings Act sponsored by liberal Senator Herb Kohl, specifically limits the rights of individuals to borrow from their own private retirement accounts and is a dangerous first step towards government control over all private retirement savings. NSA opposes this legislation and will fight any effort to reintroduce it or any similar type of bill in the next Congress which convenes in January.
We urge all Americans who oppose this new National Retirement System scheme to sign our online petition and to contact their representatives in Congress. While the confiscation of private savings will not happen tomorrow, the Administration is laying the groundwork for this scheme right now by attempting to limit the ability of all Americans to take care of themselves and save for their futures independent of the federal government.