Hello All: Democrats in Congress are talking about ending the tax advantage for 401K’s. Right now under the law, both you and your employer that provides a match can contribute to your 401K without income tax taken out first. Eventually, when you retire, presumably at a lower tax rate, after you are 59 ½, when you begin taking money out of your 401K, you would pay income tax then. In the mean time, your 401K grows tax free. Instead, the Democrats want employees and maybe employers to pay another 5% into Social Security with after tax money, which is just plain crazy considering the returns on Social Security now. This is in addition to the 7.65% paid both by the employee and the employer for Social Security and Medicare now. This would just give the government more of our money that they can spend on pork barrel projects and welfare. And, it represents a huge tax increase today on working people. Further, it will cause an even bigger stock market crash if all of a sudden 401K monies stop going into the market. Gosh, I wonder if this tax increase is included in the tax cuts that Obama wants to give 95% of the people including the 40 million who pay no income taxes at all.
If the tax advantage for 401K’s is taken away, employers will cease the match. If these monies are taxable anyway, there would be no advantage to this benefit. It will disappear with the stroke of the Democrats pen if this law is passed. Democrats believe in TAX and SPEND. This is just the beginning if Obama wins. Obama wants to add a Trillion Dollars in new spending. If you think your taxes will not go up to pay for all of this, I have a farm in a Louisiana swamp in the path of a hurricane; I want to sell you for no money down and $10 a month. JM
P.S. It does matter who wins on November 4th. Pass on this e-mail to your friends and neighbors.
