Obama: You have the right to retire with “dignity and security” so we’re going to give you $500!
Posted by danishova on May 19, 2009
On the same day that Obama’s Treasury Department announced that Social Security and Medicare are insolvent (something Democrats have denied, but Republicans have been saying for years) his administration rolled out plans for new taxpayer-funded gifts for the adoring masses. After eliminating “tax havens”, and $36 billion in tax breaks for the evil oil companies (who provide us the essential ingredients to fuel our cars, heat our homes, and enable a vast array of petroleum products) we get coal in our stocking disguised as a winning lottery ticket:
The Administration’s Budget proposes $736 billion in tax cuts for individuals and families. It follows through on a key commitment by increasing and extending the Making Work Pay Credit to provide tax cuts for 95 percent of working families, saving a typical couple $800 per year.
Who am I to dispute Barack’s claim that this $800 wealth transfer will lift 2 million out of poverty? Meanwhile, removing tax cuts for vital energy producers will result in a cost transfer to consumers. We’ll see vastly inflated costs for just about everything, and new auto emissions standards will add between $3000 to $6000 to the cost of a new car, but thanks for that $800 in candy money! But here’s the clincher:
The Budget also provides a much needed boost to Americans’ retirement savings. Those who work hard their entire lives have earned the right to retire with dignity and security. But today, a secure retirement is no longer a guarantee for the middle class. Therefore, the Budget proposes to significantly expand the existing Saver’s Credit for Americans (SCA) who work. The new credit will match 50 percent of the first $1,000 of savings for the typical family and will be refundable to ensure that even low-income workers have the chance to save for the future. The Budget also includes plans to set-up automatic enrollment in IRA’s so every family can participate in retirement saving plans.
Note that this gift is only for those whom Barack deems to be a “typical family”. Also, under Bush the SCA credit was nonrefundable and only applied to low income earners. However, under Barack the Wealth-Redistributionist-in-Chief, the credit would be refundable, which is a “tax credit” to people who pay no federal income taxes.
But, what’s truly alarming is the idea that the government will open IRA’s. This could be the first step in seizing our privately held IRAs and ROTHS, an idea which began to circulate in Congress in 2008:
In place of 401(k) plans, she would have workers transfer their dough into government-created “guaranteed retirement accounts” for every worker. The government would deposit $600 (inflation indexed) every year into the GRAs. Each worker would also have to save 5 percent of pay into the accounts, to which the government would pay a measly 3 percent return.
Wouldn’t this also take all the IRA invested dollars out of Wall Street and hand it over to the Federal Government? What does that do to the private economy?
In addition, the Budget makes permanent the American Opportunity Tax Credit, worth up to $2,500 per year for up to 4 years, so everyone who gets into college can afford to attend college. Together these tax cuts could save a middle-class family with a child in college $3,800 per year
I’m not clear how they arrive at the magic $3800 number. Meanwhile, what they don’t tell you is that this cash “could” include community service requirements as a condition of taking tuition and related expenses. All our children is belong to Obama now.
More audacious announcements here, at Tax Cheat Timothy Geithner’s Treasury Department.