Originally Posted by
Pro Fessional
BTW what is "Obama's new pay off the debt bank account?"
Not 100% sure but my bet is that it is based on an economist named Teresa Ghilarducci who said this in her congressional testimony back in 2008:
"What we want to do, we want to take your 401(k) at its August level, before the crash. We'll give you that equivalent and put it in your Social Security account, essentially, and we're going to invest that money that we take from your retirement account, your 401(k), at its August level. We're going to buy government bonds with it, which will guarantee you 3% -- and then we will require that you put 5% of your pay into your 401(k) although it's not yours anymore.
"The government owns it. They will manage it. They will take care of it, and then when your retirement day comes you'll get your Social Security check and part of your check will be whatever your 401(k) monthly payout is, after 3% of growth every year under the stewardship of the government."
That upset some people. To my knowledge there is no effort or any effort any longer in Congress to do such a thing and I'm not sure if it can be done via executive order but if it was I guess delta would put out a statement approving of it. I'm teasing.
Now ending the tax breaks on 401ks is definitely something some folks in Congress really want to do because that, cough cough, costs the government a lot of money.