One of the great scandals of the past half century has been the ease with which wealthy Americans have been allowed to divert substantial portions of their “income” to tax-incentivised retirement accounts. While so many in our country have been suffering, these wealthy few have skulked under the radar, squirreling away huge amounts of cash under the guise of “protecting their future.”
Thus through these misbegotten 401k, IRA and pension allotments, the rich have diverted funds which otherwise reasonably would have been accessible for the public pool. All for the cause of some imaginary, far-off “future” for themselves and their progeny. WHILE REAL PEOPLE, TODAY, HAVE BEEN GOING WITHOUT THE BASIC NECESSITIES!
It is a massive injustice that literally trillions of dollars have been shunted into secret, private accounts for the benefit of the few. For too long, our weak kneed, nervous nellie politicians have cast a blind eye to this practice, all the while contriving ways to try and force hard working Americans to “pay their own way” for public benefits.
That ignomy, I can say happily, is about to come to an end. The time is coming soon when so-called individual retirement accounts will be brought out of the shadows, and the astounding surpluses of money residing in these accounts will be put toward the public good.
As Teresa Ghilarducci, professor at the New School For Social Research recently testified before Congress, all of that “private” money could go a long way for the well being of the U.S. general public.
The basic idea is, remove the tax advantages of these hidden accounts and at the same time provide pressure for Americans to transfer their private money into publicly-managed “Guaranteed Retirement Accounts.” Once that happens, the U.S. government will have control of all the money individuals were previously squirreling away for themselves and their families, which obviously would be a huge benefit to society as a whole. As Ms. Ghilarducci notes:
If subsidies for 401(k)-style plans and IRAs can be reallocated to Guaranteed Retirement Accounts, why not use this money to shore up and expand Social Security?
This is certainly an option. Social Security is the cornerstone of our retirement system, and will continue to be the most important source of retirement income for the majority of retired Americans.
She also notes how this plan would eliminate the horrendous injustice whereby those who have squirreled away this 401k or pension money are allowed to pass it along to their heirs. In the new plan, only a small fraction of an individual’s retirement savings would be allowed to be kept within the individual’s family. The larger portion would go where it rightfully belongs - the U.S. Treasury, for the benefit of the people.
From what I have heard and read about our Democrat leaders in Congress and our dynamic President-elect, I think we will now have leadership with the backbone - the cajones, if you will - to pull this off.
Those greedy few Americans who have gamed the system and profited off the largesse of America’s institutions by building up 401k, IRA and pension savings accounts for their own selfish purposes will finally get their comeuppance under the Obama administration, I truly believe.
It will start with a tax “incentive,” but mark my words it will not end there. All that money which these greedy individuals attempted to hoard for themselves is going back into the public till to provide a better future for ALL Americans instead of their own selfish families.
To any of the greedy bastards who argue “I should not have worked so hard and sacrificed to put that money away if it was going to be taken away from my family” I would say simply: “God damn you, of course you should have, because that is your patriotic duty as an American. You just should not have been so selfish to think you would have been allowed to keep it all.”
Let’s just hope Mr. Obama has the cajones to keep his word, and spread it all around.