401K's in Jeopardy

Retirement funds, particularly 401K's, are at risk. As previously mentioned in the article Democrats Discuss Taking Over People's 401K's Democrats are looking to eliminate the tax break for 401K's and to subsidize a takeover of these savings plans. Investment New reports in their article House Democrats contemplate abolishing 401(k) tax breaks point out the problems with this plan.

"From where I sit that's just crazy," said John Belluardo, president of Stewardship Financial Services Inc. in Tarrytown, N.Y. "A lot of people contribute to their 401(k)s because of the match of the employer," he said. Mr. Belluardo's firm does not manage assets directly.

Higher-income employers provide matching funds to employee plans so that they can qualify for tax benefits for their own defined contribution plans, he said.

"If the tax deferral goes away, the employers have no reason to do the matches, which primarily help people in the lower income brackets," Mr. Belluardo said.

US News and World Report has also written articles on Democrats plans to target 401K's and retirement plans if they obtain control of the presidency and congress...
Why Democrats Will Target the Investor Class in 2009

Would Obama Dems Kill 401K Plans?

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Hat Tip other bloggers covering this issue...

Smart Girl Politics Kiss Your 410K Good Bye

Ms Placed Democrat Obama's 401K Plan is Nothing More Than a Junk Bond

Say What You Really Mean Under President Obama Kiss Your 401K Goodbye, Your Net Pay Shrinks, And The Constitution Will Be Walked On Like It's His Daily Exercise Routine.

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401K's in Jeopardy

Obama's Tax Plan and Income Redistribution Hurts the Economy and the Middle Class

Senator Obama's tax plan is packaged as tax cuts for the middle class when in reality there are numerous tax increases on the middle class and on small business owners. Senator Obama's tax policies are similar to those of Herbert Hoover who raised taxes, implement isolationist policies, and drove the American economy into a massive depression. Senator Obama claims that his tax policies that give a government check to people not paying anything in income taxes are done in the name of fairness. However, the economic depression that his policies would likely trigger is fair to no one. Investor's Business Daily lays out the problems with the Obama 'spread the wealth' tax plan in their article Investors Flee From 'Change' Obama Hypes

These tax credits are devised to phase-out based on income, which will ultimately increase marginal income tax rates for middle-class workers. In other words, as you earn more, you suffer a penalty in the phase-out of these credits, which has the exact effect of a marginal tax rate increase. That harms, rather than improves, the economy.

With the bottom 40% of income earners not paying any federal income taxes, such tax credits would not reduce any tax liability for these workers. Instead, since they're refundable, they would involve new checks from the federal government.

These are not tax cuts as Obama is promising. They are new government spending programs buried in the tax code and estimated to cost $1.3 trillion over 10 years.

Obama argues that while these workers do not pay income taxes, they do pay payroll taxes. True, but his planned credits do not involve cuts in payroll taxes. They are refundable income tax credits designed to redistribute income and "spread the wealth."

Meantime, Obama has proposed effective tax increases of 20% or more in the two top income-tax rates, phasing out the personal exemptions and all itemized deductions for top earners, as well as raising their tax rates.

He wants a 33% increase in the tax rates on capital gains and dividends, an increase of 16% to 32% in the top payroll tax rate, reinstatement of the death tax with a 45% top rate, and a new payroll tax on employers estimated at 7% to help finance his health insurance plan. He's also contending for higher tariffs under his protectionist policies.

Finally, he would increase corporate taxes by 25%, though American businesses already face the second-highest marginal tax rates in the industrialized world, thus directly harming manufacturing and job creation while weakening demand for the dollar.

Obama argues disingenuously that his tax increases would only affect higher-income workers and "corporate fat cats." But it is precisely these top marginal tax rates that control incentives for savings, investment, entrepreneurship, business expansion, jobs and economic growth. While he wants to tax the rich, the burden will fall on the poor and the middle class.

Obama's Tax Plan and Income Redistribution Hurts the Economy and the Middle Class

McCain Good for Business and Good for the Economy

Often times pro business even pro small business policies are looked upon with disdain as can be seen in Senator Obama recently comments criticizing Senator McCain for caring more about Wall Street than Main Street. However, this is a myopic view of the economy. Pro business policies create jobs, pro business policies help grow the economy. Putting the breaks on an already sagging economy with increased taxes does nothing for the American worker exept make life harder. CNBC notes that small business owners recognize that McCain Understands Small Business Owners

The following is a statement from American Small Business League (ASBL) President Lloyd Chapman: One look at Senator John McCain's website will tell you, this is a man that knows and cares about America's 27 million small businesses. He knows 56 percent of all Americans work for small businesses. John McCain is a small business guy through and through.

Time also reported on the 300+ professional economists that back McCain. Conversely the Union Leader disusses how Senator Obama's tax plan does not add up in their article It doesn't compute: Obama's tax plan a ruse.

Numerous organizations, including the Associated Press, have noted that Obama's proposals spend hundreds of millions of dollars more than his tax hikes raise. What is less well known is that Obama's tax plan itself sends out of Washington far more than it brings in. Obama's campaign twice admits that in the wording of the tax plan.

According to the plan, "his tax relief for middle-class families is larger than the revenue raised by his tax changes for families over $250,000." That sounds like he's giving a net tax cut. But much of what he calls "tax cuts" are actually cash payments to low- and middle-income Americans. Ultimately, he sends out of Washington hundreds of billions of dollars more than it takes in.

In other words, Obama promises more in benefits to low- and middle-income Americans than his plan can finance with his tax hikes on "families" making more than $250,000 a year. And note the word, "families." Even though Obama says that no "family" making less than $250,000 a year will see a tax increase, in fact his plan raises taxes on individuals making $200,000 a year or more.

The bottom line is that Obama is not being honest about his tax and spending plans. It is impossible -- impossible! -- for him to finance his giveaways by taxing only those making $250,000 or more. He will have to raise taxes substantially on people making much, much less than that.

Senator Obama's plans to "spread the wealth" are anti-growth measures done in the name of fairness. However, there is nothing fair about halting economic growth. There is also nothing fair about punishing success.

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McCain Good for Business and Good for the Economy

Biden Says Obama Will Be Tested With A ‘Major International Crisis’

Barack Obama will need help in a crisis, says Joe Biden from Times Online UK...

Joe Biden, the Democratic vice-presidential nominee, has told Americans to expect a “major international crisis” that will present an early test of a Barack Obama administration.

His comments were seized upon by the Republican campaign yesterday to raise fresh doubts about the prepared-ness of Mr Obama to be commander-in-chief.

Speaking at a fundraiser in Seattle on Sunday night, Mr Biden said: “Mark my words, it will not be six months before the world tests Barack Obama like they did John Kennedy. The world is looking. We’re about to elect a brilliant 47-year-old senator president of the United States of America. Remember I said it standing here . . . we’re gonna have an international crisis, a generated crisis, to test the mettle of this guy.”

He cited Russia and the Middle East as possible places that may cause problems, as well as the border between Afghanistan and Pakistan – “crawling with al-Qaeda” – as being of particular concern.

Mr Obama would need help and support, Mr Biden suggested, “because it’s not gonna be apparent, initially, that we’re right.” He then spotted the media in the room, “I probably shouldn’t have said all this because it dawned on me that the press is here.”

Now why would anyone vote for Barack Obama when his own VP states that a vote for Obama is a vote for an international crisis? Why would anyone want to be a part of a ticket that one believes will lead the country to crisis? What an unbelievable statement. The only time a time camera falls on Senator Biden at this point is when he is trying to pull his foot out of his mouth. However, this is beyond a gaffe; this is disturbing. It appears Senator Biden sees Senator Obama as weak. It appears that Senator Biden, is not confident in Senator Obama's ability to handle a crisis, and it appears that Senator Biden would prefer a "major international crisis" that a Republican president.

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Biden Says Obama Will Be Tested With A ‘Major International Crisis’

Obama, FactCheck.org, Ayers, and the Annenburg Foundation

There is a disturbing link between Barack Obama, FactCheck.org, and William Ayers. National Review reports that William Ayers and Barack Obama both served as co-chairs of the Chicago Annenburg Challenge. Obama called for an $3.5 million dollar earmark for the Annenburg Foundation that sponsors FactCheck.org. Several FactCheck articles have been viewed as promoting the Obama campaign line instead of truly acting as a fact checkers. Controlling the ‘facts’ is a hallmark of a totalitarian regime, and this is a truly unsettling connection.

Mission statement from FactCheck.org.

The Annenberg Political Fact Check is a project of the Annenberg Public Policy Center of the University of Pennsylvania. The APPC was established by publisher and philanthropist Walter Annenberg in 1994 to create a community of scholars within the University of Pennsylvania that would address public policy issues at the local, state and federal levels.
The APPC accepts NO funding from business corporations, labor unions, political parties, lobbying organizations or individuals. It is funded primarily by the Annenberg Foundation.

Requested Annenberg Earmark from Barack Obama - Citation from Answers.BarackObama.com

Obama Requested $3.5 Million For The USC Annenberg Research Network. In 2005, Obama requested $3.5 million for the USC Annenberg Research Network on International Communication, in partnership with the University of Illinois at Urbana-Champaign, to support the deployment of pervasive broadband for education and economic development.Funding was for the construction of a large-scale broadband wireless systems in two communities—one in South Los Angeles and the other in small-town Illinois. In each community, broadband network coverage will be provided over a minimum of about a half-square mile area, utilizing leading edge wireless technologies. In Los Angeles, this will include the five schools in USC’s immediate neighborhood, with about 8,000 K-12 students. USC also will provide wireless equipment and access to every family with a student entering the first grade of a new Science Center School, and in Illinois, a similar group of students will be selected to receive wireless equipment and access within the coverage area. The impact of these technologies on the students and their families will be tracked. [Obama Request Letter to the Senate Appropriations Subcommittee on Labor, HHS, Education, 6/7/05]

Obama’s Challenge from the National Review

Let’s first review CAC’s [Chicago Annenburg Challenge] initial setup. In the first year, 1995, Obama headed the board, which made fiscal decisions, and Ayers co-chaired the Collaborative, which set education policy. During that first year, Obama’s formal responsibilities mandated close cooperation and coordination with the Collaborative. As board chair and president of the CAC corporation, Obama was authorized to “delegate to the Collaborative the development of collaborative projects and programs . . . to obtain assistance of the Collaborative in the development of requests for proposals . . . and to seek advice from the Collaborative regarding the programmatic aspects of grant proposals.” All this clearly involves significant consultation between the board, headed by Obama, and the Collaborative, co-chaired by Ayers.

Hat Tip to Death by 1000 Papercuts for first reporting this in their article Obama, Bill Ayers, and FactCheck.Org: All Have Ties To Annenberg Foundation

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Clarification: The connection between Obama and Ayers is through
the Chicago Annenberg Challenge that received money from the Annenburg
Foundation, but the Chicago Annenburg Challenge Challenge and the
Annenburg Foundation are not directly connected philosophically.  The
earmark Senator Obama requested was for the Annenburg Foundation, which
funded the Chicago Annenburg Challenge and also funds FactCheck.org. 
Obama is tied to both groups one via earmark, the other via direct
participation, however, Ayers is not directly connected to
FactCheck.org.

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Obama Controlling the Facts

Economic and ACORN Links

With the first draft of the Democrat's economic bill including give aways to groups like ACORN, a combination of public outrage and confusion has lead to numerous questions about the bill, ACORN, and Fannie Mae and Freddie Mac. Here are some links to articles on these topics...

ACORN

Acorn's Sentaor

CRL: ACORN Will Still Reap Windfall from Financial Crisis

Rescuing ACORN

O's Dangerous Pal's

Econ Bill

ACORN Outrage Removes Affordable Housing Provision

ACORN Issue Fueling Bailout Opposition

ACORN, Obama, and the mortgage mess

THE MELTDOWN'S ACORN

Fannie Freddie

How the Democrats Created the Financial Crisis: Kevin Hassett

Where Was Sen. Dodd?

Where was Dodd during the Fannie Mae collapse?

Wrecks, Lies and Barney Frank

Obama's Ties To Acorn

Obama's Ties to ACORN

Small Business Owner Supports McCain - Deliver Change