Can the government take your savings and to use to pay our massive deficit?
IBD:
You did the responsible thing. You saved in your IRA or 401(k) to support your retirement, when you could have spent that money on another vacation, or an upscale car, or fancier clothes and jewelry. But now Washington is developing plans for your retirement savings.
BusinessWeek reports that the Treasury and Labor departments are asking for public comment on "the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams."
In plain English, the idea is for the government to take your retirement savings in return for a promise to pay you some monthly benefit in your retirement years.
They will tell you that you are "investing" your money in U.S. Treasury bonds. But they will use your money immediately to pay for their unprecedented trillion-dollar budget deficits, leaving nothing to back up their political promises, just as they have raided the Social Security trust funds.
Power Line delves deeper into the ramifications already being seen:
If the Obama administration were to announce an intent to confiscate Americans' retirement savings, the howls that would arise from lawyers (and others, too, of course) would be deafening. I don't think the administration could get away with it. Which doesn't mean they won't try, as the current efforts by the Departments of the Treasury and Labor indicate.
Still, others disagree. Earlier today I learned that a relative on Wall Street has stopped accumulating funds in his retirement accounts precisely because he thinks they may be confiscated by the Obama administration. Instead, he is acquiring untraceable, tangible assets--gold and silver--that the government won't be able to steal without a physical search of his property.
That's not good for the economy, of course. When citizens who have the ability to invest in our economy don't dare do so, for fear that their savings will be stolen by the government, we are reverting to an earlier and far poorer economic era. But that, apparently, is what the Obama administration wants. Here, as in so many other ways, we are sailing in uncharted waters.
So, I repeat my initial question.
Can the government take your savings and to use to pay our massive deficit?
Why yes, they can.
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