January’s 2009 Agenda for Democrats starts with the Elimination of your 401K

Powerful House Democrats in July 2008 were eyeing new proposals to overhaul the nation's $3 trillion 401(k) system, including the elimination of most of the $80 billion in annual tax breaks that 401(k) investors receive. House Education and Labor Committee Chairman George Miller, D-Calif., and Rep. Jim McDermott, D-Wash., chairman of the House Ways and Means Committee's Subcommittee on Income Security and Family Support, are looking at redirecting those tax breaks to a new system of guaranteed retirement accounts to which all workers would be obliged to contribute. Under the plan, all workers would receive a $600 annual inflation-adjusted subsidy from the U.S. government. The employee would be limited to max 5% investment of their pay into a guaranteed retirement account administered by the Social Security Administration. The money in turn would be invested in special government bonds that would offer a lousy 3 percent return a year, adjusted for inflation. The current system of providing tax breaks on 401(k) contributions and earnings would be eliminated. With the majority in the House and Senate in control by the Democrats, this program will be on Priority Fast Track.

Well it appears the democrats are following in the same steps as the cash-strapped Argentina (socialist system )who just did it in the name of protecting workers' retirement accounts.

This plan was originally proposed by Theresa Ghilarducci, professor of economic policy analysis at the New School for Social Research in New York, and presented to Miller and McDermott last july 2008 at a House hearing.

Obama did promised to solve this problem by making "rich people" pay more into Social Security while reducing their benefits, transforming a retirement plan into a wealth transfer plan.

In one move, the hated private market would be deprived of the capital that makes "capitalism" possible, and the government would have the money to fund the massive expansion of government programs, subsidies and tax "cuts" promised by Barack Obama.