Friday, February 22, 2013

The coming 100 percent death tax

By Donald Sensing


Quietly, behind the scenes, the groundwork is being laid for federal government confiscation of tax-deferred retirement accounts such as IRAs. Slowly, the cat is being let out of the bag. Last January 18th, in a little noticed interview of Richard Cordray, acting head of the Consumer Financial Protection Bureau, Bloomberg reported "[t]he U.S. Consumer Financial Protection Bureau [CFPB] is weighing whether it should take on a role in helping Americans manage the $19.4 trillion they have put into retirement savings, a move that would be the agency's first foray into consumer investments."
Translation of this Orwellian poli-speak: The CFPB "is weighing whether it should" means, "We are going to as soon as we can make it politically possible." Continuing:
By 2010 Bloomberg published an article titled "US Government Takes Two More Steps Toward Nationalization of Private Retirement Account Assets." In that article Patrick Heller observed that, with Democrat control of Congress and the Presidency:
[I]n mid-September 2010 the Departments of Labor and Treasury held hearings on the next step toward achieving Ghilarducci's goals. The stated purpose was to require all private plans to offer retirees an option to elect an annuity. The "behind-the-scenes" purpose for this step was to get people used to the idea that the retirement assets they had accumulated would no longer be part of their estate when they died.
So the Government would get the money, not the estate or family of the people who saved the money during a lifetime of work. That's a one hundred percent death tax on savings. Worse, the most responsible and poorest families will be penalized.
The whole source piece is detailed: The Feds Want Your Retirement Accounts

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