Something else you'll never hear from progressives: replacing 401K for higher earners to help lower income workers

[bendog]

A Retirement System Fix Draws Heat. The Architect Isn't Backing Down.

Labor economist Teresa Ghilarducci's proposal to fix the retirement system, the topic of a recent Barron's article, attracted opposition from some readers.

www.barrons.com

Other readers saw Ghilarducci’s proposal as a socialist plan to redistribute wealth. She replies that her initiative is based on getting more workers invested in the stock market, the bastion of capitalism. “The socialists don’t see me as one,” she says. “Don’t insult socialists by calling me one.”

Indeed: no free lunch

 

[Otis Mayfield]

If you make over $400,000 a year, you no longer get a tax cut.

Cry me a river.

 

[Blues Man]

Yeah great idea to let the fucking government take and "manage" more of your money. NOT

They'll be raiding the pension fund just like they did Social Security

 

[Uncensored2008]

If you make over $400,000 a year, you no longer get a tax cut.

Cry me a river.

If you make over $40 a year, you get a massive tax increase from inflation.

If you make over $40,000 a year you get a massive income tax increase.

If you give over $4 million to the democrat Reich each year, you pay no taxes at all.

 

[Thinker101]

A Retirement System Fix Draws Heat. The Architect Isn't Backing Down.

Labor economist Teresa Ghilarducci's proposal to fix the retirement system, the topic of a recent Barron's article, attracted opposition from some readers.

www.barrons.com

Other readers saw Ghilarducci’s proposal as a socialist plan to redistribute wealth. She replies that her initiative is based on getting more workers invested in the stock market, the bastion of capitalism. “The socialists don’t see me as one,” she says. “Don’t insult socialists by calling me one.”

Indeed: no free lunch

Isn't Social Security already a government-run pension plan...about to go broke.

 

[LordBrownTrout]

The govt wastes trillions, spends trillions, runs worthless social engineering that never works, takes SS and dumps it into the general fund, creates endless wars that cost trillions, lies about everything. Why would any person with more than two brain cells trust the federal govt with a single dime?

 

[Uncensored2008]

Isn't Social Security already a government-run pension plan...about to go broke.

Yeah, but people have a lot of money in private retirement plans, and the democrats WANT IT.

democrats are going to take your 401K and IRA - fact.

 

[marvin martian]

A Retirement System Fix Draws Heat. The Architect Isn't Backing Down.

Labor economist Teresa Ghilarducci's proposal to fix the retirement system, the topic of a recent Barron's article, attracted opposition from some readers.

www.barrons.com

Other readers saw Ghilarducci’s proposal as a socialist plan to redistribute wealth. She replies that her initiative is based on getting more workers invested in the stock market, the bastion of capitalism. “The socialists don’t see me as one,” she says. “Don’t insult socialists by calling me one.”

Indeed: no free lunch

She's not a socialist, she's a fascist. Anyone who advocates for redistribution of wealth at gunpoint (which would be the only way to enforce this type of confiscation) is a fascist.

 

[Uncensored2008]

She's not a socialist, she's a fascist. Anyone who advocates for redistribution of wealth at gunpoint (which would be the only way to enforce this type of confiscation) is a fascist.

Socialist, fascist, tomato, tomahto

 

[Winston]

A Retirement System Fix Draws Heat. The Architect Isn't Backing Down.

Labor economist Teresa Ghilarducci's proposal to fix the retirement system, the topic of a recent Barron's article, attracted opposition from some readers.

www.barrons.com

Other readers saw Ghilarducci’s proposal as a socialist plan to redistribute wealth. She replies that her initiative is based on getting more workers invested in the stock market, the bastion of capitalism. “The socialists don’t see me as one,” she says. “Don’t insult socialists by calling me one.”

Indeed: no free lunch

Yep, getting more workers invested in the stock market. Which means more money for the financial sector. Make no mistake about it, this plan is not being proposed to help low-income workers. It is an attempt to get some fees from low-income workers. And the double match, why holy shit, that is the government giving money to financial services so they can garnish even higher fees.

Look, a 401K is little more than a suckers bet and a tax bomb. They don't reduce tax bills, they "defer" them. And instead of paying taxes on your income, well you get to pay it on the income AND any gains. A ROTH is a better option, pay the taxes today, don't pay taxes on the gains tomorrow. Besides, why would you invest in a 401K and pay income taxes on your gains when you can invest in the market and only pay long term capital gains on your gains?

 

[Winston]

She's not a socialist, she's a fascist. Anyone who advocates for redistribution of wealth at gunpoint (which would be the only way to enforce this type of confiscation) is a fascist.

She is a hardcore capitalist. And it is quite funny you talk about a redistribution of wealth, and even funnier that you mention gun point. One doesn't need a gun to redistribute wealth, the financial intermediaries have demonstrated that quite eloquently. A normal, well functioning, FREE MARKET, usually includes a cost of financial intermediation at 1.3% to 2.3% of assets. That level financed our railroads, steel and chemical industries, the automotive industry, and even provided electricity to millions of Americans. Today, the cost of financial intermediation is 7.5%, three times the highest normal level and with no additional efficiency. The result,

All together, Phillipon calculates the excess income consumed by the finance sector totals 2 percent of GDP, “an annual misallocation of resources of about $280 billions for the U.S. alone.” If accurate, that figure suggests an extraordinary redistribution of the national wealth—from the pockets of the debtors and middle class investors who need it most, straight into the bank accounts of America’s financial elite.

Graph: How the Financial Sector Consumed America’s Economic Growth

Last Tuesday, The Century Foundation was honored to host Alan Blinder, renowned economist and recent editor (alongside Andrew Lo and Robert Solow) of

tcf.org

No need for a gun. Just depend on uninformed people.

 

[bendog]

Yep, getting more workers invested in the stock market. Which means more money for the financial sector. Make no mistake about it, this plan is not being proposed to help low-income workers. It is an attempt to get some fees from low-income workers. And the double match, why holy shit, that is the government giving money to financial services so they can garnish even higher fees.

Look, a 401K is little more than a suckers bet and a tax bomb. They don't reduce tax bills, they "defer" them. And instead of paying taxes on your income, well you get to pay it on the income AND any gains. A ROTH is a better option, pay the taxes today, don't pay taxes on the gains tomorrow. Besides, why would you invest in a 401K and pay income taxes on your gains when you can invest in the market and only pay long term capital gains on your gains?

Yeah, she's a hard core capitalist. But so was Reagan. Capitalism can only exist when the benefit of labor goes to the lower earners as well.

The only benefit of a 401K is to pay taxes when your "income" is lower. The wealthy show little to no income .... ever. And yes, with a Roth you pay your income tax up front, but your heir will not only take the nut tax free, but your stepped up basis, and perhaps never pay tax on that either.

 

[Blues Man]

Yeah, she's a hard core capitalist. But so was Reagan. Capitalism can only exist when the benefit of labor goes to the lower earners as well.

The only benefit of a 401K is to pay taxes when your "income" is lower. The wealthy show little to no income .... ever. And yes, with a Roth you pay your income tax up front, but your heir will not only take the nut tax free, but your stepped up basis, and perhaps never pay tax on that either.

That whole income is lower thing doesn't always work out.

You have to take out what the government tells you to take out or else get hit with a stiff penalty.

If in retirement you only need to take 30K out of your 401 for the year the fucking IRS will make you take out more if that's what the required minimum withdrawal formula says.

A traditional 401 or IRA is designed to squeeze every tax dollar possible out of retirees.