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Obama Doesn’t Expand IRA Accounts

From a shamelessly mendacious Associated Press:

President Barack Obama walks on the South Lawn of the White ...

Obama expands workers’ retirement savings options

WASHINGTON – The recession has eaten into people’s nest eggs so the government is promoting ways to make it easier to save for retirement.

One initiative that President Barack Obama outlined in his weekly radio and Internet address Saturday will allow people to have their federal tax refunds sent as savings bonds. Others are meant to require workers to take action to stay out of an employer-run savings program rather than having to take action to join it.

"We know that automatic enrollment has made a big difference in participation rates by making it simpler for workers to save," Obama said. "That’s why we’re going to expand it to more people."

The new federal steps, which do not require congressional action, include:

— Making it easier for small companies to set up 401(k) retirement savings plans in which all workers are automatically enrolled unless they ask to be omitted. Employers can set default amounts of each worker’s pay — perhaps 3 percent — to automatically be deposited into the accounts without being taxed. Workers can raise or lower the contribution levels, and they choose how to invest the money. They will pay taxes on the money only when they withdraw it as retirees, when their tax rates are likely to be lower than when they are working full-time. A similar process would apply to savings plans called SIMPLE-IRAs.

— Allowing such plans to automatically increase the amount that workers save over time unless the workers object.

Allowing people to check a box on their federal tax returns asking that any refund be sent as a savings bond. More than 100 million U.S. households receive refund checks each year, and many are promptly cashed and spent.

— Allowing workers, when leaving a job, to direct unused vacation pay to a retirement savings account rather than taking it in cash.

"This recession has not only led to the loss of jobs, but also the loss of savings," Obama said, citing declines in home values as well as sources of retirement income.

"If you work hard and meet your responsibilities, this country is going to honor our collective responsibility to you: to ensure that you can save and secure your retirement. That is why we are announcing several commonsense changes that will help families put away money for the future," Obama said…

While saving for retirement is universally seen as a good idea, any increase in savings rates could somewhat slow the nation’s rebound from the economic recession.

If Mr. Obama truly wanted to encourage saving for retirement he would raise the caps on IRA contributions. But he has not done that and he will not do that.

The steps he has undertaken here meaningless, except perhaps for the effort to get more money out of the economy and into the government’s pocket:

Allowing people to check a box on their federal tax returns asking that any refund be sent as a savings bond. More than 100 million U.S. households receive refund checks each year, and many are promptly cashed and spent.

We can’t have that! People just spending the money they earned from the sweat of their own brow as they see fit.

Though isn’t that evil spending the very thing that is supposed to lift us out of the recession?

While saving for retirement is universally seen as a good idea, any increase in savings rates could somewhat slow the nation’s rebound from the economic recession.

We thought so.

This article was posted by Steve on Saturday, September 5th, 2009. Comments are currently closed.

17 Responses to “Obama Doesn’t Expand IRA Accounts”

  1. Confucius says:

    From the AP:

    Obama expands workers’ retirement savings options

    By Charles Babington

    WASHINGTON – The government is trying to make it easier for Americans to save for retirement, President Barack Obama said Saturday, as he noted the toll the recession has taken on extra income and savings accounts.

    One initiative will allow people to have their federal tax refunds sent as savings bonds. Others are meant to require workers to take action to stay out of an employer-run savings program rather than having to take action to join it.

    The new federal steps, which do not require congressional action, include:

    • Allowing such plans to automatically increase the amount that workers save over time unless the workers object.
    • Allowing people to check a box on their federal tax returns asking that any refund be sent as a savings bond. More than 100 million U.S. households receive refund checks each year, and many are promptly cashed and spent.
    • Allowing workers, when leaving a job, to direct unused vacation pay to a retirement savings account rather than taking it in cash. …

    “Just as the administration is dedicated to reviving the economy and getting people back to work, so too it is dedicated to helping put retirement security within the reach of all Americans,” Geithner said in a statement.

    While saving for retirement is universally seen as a good idea, any increase in savings rates could somewhat slow the nation’s rebound from the economic recession.

    http://news.yahoo.com/s/ap/20090905/ap_on_go_pr_wh/us_obama_retirement_savings

    Another bait-and-switch from Charlatan Obama and charlatan Geithner. These plans take choice and money away from the working class and give them to Wall Street, banks, union bosses and the government.

    The last line in the article is a puzzler. It’s almost like the AP is conflicted.

  2. Rusty Shackleford says:

    houscleaning

  3. Rusty Shackleford says:

    The new federal steps, which do not require congressional action, include:
    —-WHICH DO NOT REQUIRE CONGRESSIONAL ACTION
    —-In other words, do not allow for the microscope of critical scrutiny.

    • Allowing such plans to automatically increase the amount that workers save over time unless the workers object.

    —–UNLESS THE WORKERS OBJECT
    —–At which time the “workers” will be ridiculed and subjugated to a lesser status and FORCED TO COMPLY

    • Allowing people to check a box on their federal tax returns asking that any refund be sent as a savings bond. More than 100 million U.S. households receive refund checks each year, and many are promptly cashed and spent.
    —–GIVING THE FALSE IMPRESSION THAT COMPLIANCE IS VOLUNTARY BEFORE THE GOVERNMENT EVENTUALLY MAKES IT MANDATORY THAT YOU HAND YOUR REFUND OVER TO THEM. “CASHED AND SPENT” IS CODE FOR “USING IT AGAINST THE WILL OF THE GOVERNMENT”

    • Allowing workers, when leaving a job, to direct unused vacation pay to a retirement savings account rather than taking it in cash. …
    —–RATHER THAN TAKING IT IN CASH, WHICH OF COURSE WOULD ALLOW THE INDIVIDUAL SOME SORT OF BENEFIT, RATHER THAN SUPPORTING THE GREAT SOCIAL REGIME

    “Just as the administration is dedicated to reviving the economy and getting people back to work, so too it is dedicated to helping put retirement security within the reach of all Americans,” Geithner said in a statement.
    —–GETTING PEOPLE BACK TO WORK As in a “comrade worker society”
    —–”Retirement Security” is code for “cradle to grave” nanny-state sponsorship.

    These people have got to go.

    • JohnMG says:

      I’d rather have an IOU from the California Department of Revenue as my tax refund as to have the Federal Government issue a Savings Bond to me in lieu of a refund check!

      If the general population of this country are incapable of seeing through this ruse, then I fear all is lost. I mean, what could possibly go wrong? Or as Alfred E. Neuman would say, “What–me worry?”

  4. Petronius says:

    If Nerobama truly wanted to encourage saving for retirement he would not have created a $1.4 trillion deficit. And he would not be insisting upon adding another $1 trillion for socialized medicine.

    He is desperate indeed if he thinks the Govt is going to raise $1.4T by selling savings bonds to working people. Even the Chinese don’t have that kind of cash. And who wants to own bonds in an era of hyperinflation? Who will invest money at, say, 3% yield, when inflation is lurking around the corner?

    That $1.4T deficit, and the interest thereon, is inevitably going to lead us into heavy taxation (a permanent recession and lower standard of living) and/or hyperinflation (God help us all). For most people, personal savings in paper assets will be destroyed under either scenario. The only safe paper assets in inflation might be strong foreign currencies or TIPS. Smarter to spend your cash while it still has any value left.

  5. crosspatch says:

    By issuing savings bonds, the government is, in effect, forcing you to lend them your refund until such time as it is cashed.

    It is a really interesting accounting trick. The other interesting thing is that savings bonds redeemed within three months of issue pay no interest so Uncle Sam gets an interest-free loan.

  6. VMAN says:

    Bonds backs by the full faith and trust of the US Federal Gubmint. Well I have I have NO faith or trust in this government. The O Hole is just warming us all up for IOUs.

  7. VMAN says:

    Oh and another thing if you don’t accept the IOUs you will be branded as un-American and a traitor. You know one of them dang tea-baggers.

  8. MinnesotaRush says:

    We start off in trouble.

    “The recession has eaten into people’s nest eggs so the government is promoting ways to make it easier to save for retirement.”

    So is that the same gov’t that got us into this pickle in the first place and worsened it by de-valuing people’s investments and 401k’s that they had for retirement? Hmmm.

    Now .. let’s take another peek at o-blah-blah’s extreme grandiosity as he says, “If you work hard and meet your responsibilities, this country is going to honor our collective responsibility to you: to ensure that you can save and secure your retirement.”.

    Whatta statement! So if you foolish low-lifes work hard and “pay all your dues” .. then (and only then) .. this benevolent and just gubamint .. will throw some scraps your way ’till you get your end of life counseling.

    Hey!!! O-blah-blah!!! How ’bout you and your cronies staying the hell outta the way!!! That’ll help more than anything!!!

    And then we get, “That is why we are announcing several commonsense changes that will help families put away money for the future,” Obama said…

    One .. where the hell is o-blah-blah (et al) going to get any COMMON SENSE? These fools’ answer to everything is more and more government! Two .. get the hell outta the way!!! Foks were doing plenty well ’till you and your party got on scene mr o-blah-blah.

    This dingy and his crew are so disconnected with reality it’s frightening!!!

    • JohnMG says:

      …..“The recession has eaten into people’s nest eggs so the government is promoting ways to make it easier to save for retirement……”

      Sorta like they’ve managed to do with Social Security? Wellll, whyn’t ya say so right away? I’m up wi’ dat. NOT!!!!!!

  9. proreason says:

    The details of this are irrelevant to the purpose.

    The purpose is for the Moron to be able to declare that he has dramatically increased the ability to save for retirement, when he announces version 17.2.5.6 of his Universal Health Scam next week.

    None of the details will make a hill of beans difference to a single person, or to the government.

    It’s purely for show.

  10. RightWinger says:

    George Bush wanted to allow the option of workers to put a mere 2% of their social security payments into a private account that the worker controlled and the Libs went nuts. Never mind that 2% would never have ruined Social Security as people like Teddy cried, it’s just 2% that would have never ended up in the General Fund for Congress to spend on themselves.

    Watch and I’ll bet the part where Lil’ Barry says you can check a box on your return and have the money sent to you in a Savings Bond, is flipped around and that you need to check the box in order to have your refund sent to you as cash. It will probably be hidden somewhere and hard to find as well to ensure the maximum number of Savings Bonds are issued.

    I’ll keep on putting my extra cash into gold and silver coins, thank you just the same Lil Barry.

  11. TwilightZoned says:

    “Others are meant to require workers to take action to stay out of an employer-run savings program rather than having to take action to join it.”

    This statement seriously makes me wonder if Barry plans on a government take-over of employer-run savings programs. With so many more people involved they’d have even more of our money to flush away or redistribute.

  12. umm..

    “– Allowing people to check a box on their federal tax returns asking that any refund be sent as a savings bond. More than 100 million U.S. households receive refund checks each year, and many are promptly cashed and spent. ”

    a method of dealing with inflation by putting it off to a later date.

    I have wondered about the financing of ongoing efforts by the administration and the reluctance of a fed audit. Consider that the auto dealers waiting for payment ..are still waiting. What does this tell us? The government has no money to work with, and is reluctant to start the printing presses just yet.

    The US is BROKE plain and simple, and while we have all been aware of this fact, the press and the leadership has danced around the issue, pretending its an “abstract concept.” There is nothing abstract about the fact that if the government is going to pay its bills this year, or in the future, it MUST create more cash. To do so simply reduces the value of the exisitng supply..

    Think “stock split,” but with the newly created shares simply taxed away by the govt. Poor folks will get their share of taxes anyhow.. we all will. 401ks notwithstanding.

  13. RightWinger says:

    I got this e-mail from a new Nigerian scam format this morning. I bet makes more money for them than Lil’ Barry’s savings bond scheme makes for the Government.

    “MY REQUEST

    I have a very important request.

    I am David Garfield, Chief Campaign Officer of the PRINCIPAL CAMPAIGN COMMITTEE
    OF DEMOCRATS: OBAMA 2010 INC ID: C00411934.

    I write to seek your sincere assistance in transferring the sum of £10M GBP 10
    million Pounds sterling.

    I discovered my office has some excess funds amounting too 10 million Pounds
    recovered from donations and grants from democrats around the world during our
    election campaign and pleas for support for our incumbent president Barack
    Hussein Obama, According to plans, The excess funds was to used in clearing
    debts owed by Mrs Hillary Clinton during her campaign programs,I taught there is
    a better way of expending this funds.I want this money to be used to alleviate
    the poverty and sufferings of children in Iraq and Africa and donate to Charity
    organizations around the world.

    My plea to you is that you assist me get this funds out of the United Kingdom
    where it is presently lodged safe and for your assistance ,you will have a fair
    percentage of the total money and all investments shall be under your
    supervision.

    This simple transfer process could be arranged in less than 3 working days.

    I await your sincere response,

    David .A. Garfield.
    Chief Campaign Officer,
    Barack Obama Campaign Office.
    Phone: +4470359 xxxxx. “

    Just an FYI, the +44 area code shows UK as being the country the scammer is pretending to be in, but the “703” is a redirect number that transfers the call to a cell phone in Nigeria. That is because the scammers know if they say they are from Africa or Nigeria, most people will run for the hills. They say they are from the UK instead, they get a few more pockets to steal from.

  14. BigOil says:

    They will pay taxes on the money only when they withdraw it as retirees, when their tax rates are likely to be lower than when they are working full-time.

    With the massive debt being accumulated – don’t bet on it.

    This scheme amounts to people loaning the government money twice. The first loan is allowing the government to withhold an excessive amount of your money over the course of a year.

    I make it a point to decrease withholding where I end up owing enough in taxes to remain just below paying a penalty.


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