Stunning assertions are coming to light from a Time magazine article that suggests that the Democrats may decide to come after your 401k next in the name of “fairness”. In a previous article, we wrote about how the home mortgage deduction may be taken away in the name of “fairness”, and new information tells us that the elite in Washington are now considering doing the same thing with 401k tax deductions. This is in addition to other rumors that have come out about a proposed “Wealth Tax”.
401k deductions are set at $17,500 for 2013, which means if you make $100k, and you deposit the max allowed into your 401k — You can essentially lower your taxable income to $82500. This is a big deal, and something that most high-income earners do to avoid high taxes on their W2 income.
Democrats are now arguing behind closed doors that this deduction heavily favors “the rich”, and that 80% of the 401k wealth held in this country is held by “the wealthy”. This is another argument based on class warfare, which we would normally think the American public would be too smart to believe — but the recent election results tell us that you should be concerned. Very concerned. Their argument is that the 401k really doesn’t benefit their voters. If someone only makes $20,000 a year — what is really the benefit of giving them a tax free vehicle to invest for retirement? That’s something that only benefits Republican voters.
Inside sources are mentioning that Democrats in Congress are proposing phasing out the 401k deduction depending on your income. This is similar to how they handle student loan interest now. They assume that if you make over a certain amount of money, you obviously don’t need the student loan interest deduction, so they phase it out. Of course this completely shocks new doctors who come out of med school with hundreds of thousands of dollars in student debt, only to find out that they can’t properly write off the student debt interest, because their income is too high.
Their plan seems to be to replace the 401k deduction with something more fair that “spreads the wealth around” more efficiently. This would most likely be a flat tax credit that would apply to all Americans. Maybe you would get $600, for example — so that the tax benefit would be equal between someone that made $20,000 or someone that makes $200,000. If you’re smarter than the average bear, you might be already seeing through this barrage of BS which cloaks an obvious huge tax increase on the successful. This is an all out attack on not just the wealthy anymore, but anybody who dares to pull themselves out of the so-called “middle class”.
This is all part of the campaign that Obama ran to get re-elected folks. Giving everybody a “fair shot”, and making the playing field more level. Obviously we can’t have these evil capitalists benefiting more than the workers in our country. In Obama-land, it’s the bus drivers, and the cash register operators of our country that are the real life blood — Not small business, or high earning professionals who have devoted many years to school and specialization. In Obama-land, “It’s now how much you earn”, as he repeatedly told us in his DNC speech.
While this is going on, we continually see our supposed Republican elected officials on TV talking about how they will argue to the death not to raise tax rates, but instead to close tax loopholes. Am I the only one who thinks this is completely nuts? That is STILL RAISING TAXES folks! I don’t care if you raise tax rates, or get rid of deductions — if you are collecting more tax revenue from the same people without growing the economy, that is a TAX INCREASE. Republicans are supposed to be the pro-growth party, that fights for pro-growth solutions to economic problems — And now we’re re-arranging deck chairs on the Titanic with the Democrats so that we can work together to raise taxes?
This Rogue Elephant is in utter shock that it’s come to this…