The budget proposal President Obama recently submitted had several provisions designed to increase government tax revenue. But one provision concerning retirement accounts triggered alarm bells for many Americans, raising fears that the government will confiscate your retirement savings.
Why people think confiscation is possible
The provision in the Obama budget calls for tax laws to "prohibit individuals from accumulating over $3 million in tax-preferred retirement accounts." Specifically, the budget refers to a complicated formula that involves figuring out how much money a person would need in order to buy an annuity contract that would guarantee annual payments to retirees of $205,000 for the rest of their lives. The proposal would raise $9 billion over the next 10 years, according to the budget's forecast.
Immediately, many analysts jumped to the conclusion that the provision might involve actually taking away money from retirement accounts. CNBC's Larry Kudlow described the measure in a special editorial in the New York Sun as an "incredible and arbitrary limit or tax on -- or even possible confiscation of -- IRA-type tax-advantaged savings account [emphasis
If you read right-wing propaganda all day long you are going to become paranoid. Or are paranoid people attracted to right wing propaganda? Sort of like a chicken and egg type question.
I was in Europe last week. France wants to take 75% of your income if you make over a million Euros.
The EU has set the precedent with Cyprus..........and of course you laugh, this would never happen here. Roosevelt took people's gold in 1933..........and sent Japanese Americans to camps in 1942. Obama took over 2 auto companies...........made sense to you big Libs....F the law......did his own form of reorganization......and stuck it to the bond holders....;.never been done before.
When the government goes broke, they will do anything...
You either have your head in in the sand or are naïve......
Actually, he's correct. It isn't "rear mongering". It's fact.
In addition to confiscatory INCOME tax rates, France also taxes accumulated WEALTH as well through a so-called "solidarity tax". The country is spending SO much money that they cannot pay the bills even if they took 100% off the income from the upper wage earners. So they have to go after the assets, pre death, of the wealthy as well as their income.
Other EU countries have had a wealth tax. Some have abandoned. There is talk that German policy makers are considering such a tax there.
Portugal and Argentina CONFISCATED private pension plans because the government needed the money to fund its public debt.
This isn't fear mongering. It's FACT.
and if you've lived during that era and had your gold confiscated and sent to a camp(second generation japanese american) ,you may understand the concern............its not only obama ,its been all these president emperors.......you had better look out for yourself,no one else will
These initiatives always start very slow and are hardly noticed.
Currently social security is being reduced for the upper 3-5% of earners.....no one notices.....wonder where this will head ?.....obviously means testing.
In the early 90's the government began mandating laws for pensions.......started slow until they started dictating laws on something that was a benefit.......they are now all gone.
The government began tracking your 401K balance and yearly contributions. Why would they need to do that ??
30 years ago people would have laughed in your face if you said the government was going to dictate your health care...........here we are......
There is $17 trillion sitting in 401K's...........the government is salivating.....
Most of the Americans that have been ask this question have expressed that it would be fine to have the President and his wife take all of the retirement from the people he serves and move to Kenya .