The National Seniors Council continues to lead the fight to prevent Congress and the Obama Administration from confiscating private retirement savings as part of a scheme to create a new “national retirement system.”
During negotiations between Congress and the Administration over the so-called “fiscal cliff,” NSC’s website was nearly overwhelmed with visitors seeking information on efforts to change the tax code to limit the ability of Americans to save on their own for retirement.
National Director Robert Crone warned that, “As part of the Administration’s continuing drive to redistribute wealth, the National Seniors Council believes that tax-deferred contributions to retirement plans like 401(k)s and IRAs may very well be on the table in bipartisan budget negotiations going on right now between Congress and the White House. NSC will vigorously oppose any such ‘compromise.’”
Liberals in Washington have long maintained that the favorable tax treatment of such contributions is effectively a “subsidy” to people who can afford to save for retirement and is not only unfair but a significant cause of the current government debt crisis. Therefore, it is quite likely that some type of limitation on how much “wealthy” individuals will be allowed to save using these investment vehicles is being insisted on by the Administration during President Obama’s second term.
Since President Obama first came into office his Administration has made no secret of its desire to overhaul the way Americans save for retirement. This new National Retirement System will force virtually all Americans into government-run Guaranteed Retirement Accounts and do away with private retirement accounts entirely.
Congressional Democrats held hearings on this very issue in 2008, an alliance of labor unions and left-wing groups have founded Retirement USA, a non-profit lobbying group, and legislation limiting the ability of individuals to control their private savings is currently pending before Congress.
“S. 1020, the Savings Enhancement by Alleviating Leakage in 401(k) Savings Act sponsored by liberal Senator Herb Kohl, specifically limits the rights of individuals to borrow from their own private retirement accounts and is a dangerous first step toward government control over all private retirement savings,” explains Crone.
“NSA opposes this legislation and will fight any effort to reintroduce it or any similar type of bill in the next Congress, which convenes in January,” he said.
Even if tax reform is not part of a short-term budget deal between Obama and Congressional Republicans, NSC’s contacts in Washington say that some type of tax code overhaul will eventually be considered this year. “That means we are going to have to remain alert and continue fighting to protect IRA and 401(k) accounts from the politicians,” Crone says. “This is an extreme threat.”
“We urge all Americans who oppose this new National Retirement System scheme to sign our online petition and to contact their representatives in Congress. While the confiscation of private savings will not happen tomorrow, the Administration is laying the groundwork for this scheme right now by attempting to limit the ability of all Americans to take care of themselves and save for their futures independent of the federal government,” adds Crone.