October 23, 2008

Digging Holes

Jacob Sullum at Reason, says "Beware any politician who promises to create new jobs". Of course they all do. But even someone with a better understanding of the private sector, and less antipathy toward it than Obama has, couldn't efficiently plan and bring to fruition the "Green economy" of campaign rhetoric, from a perch in Washington.

In fact, Obama's party is already serving notice that they will be in all-out war mode against the U.S. private economy if Obama is elected. Add to the business-killing Card Check legislation they have planned, and the promised capital gains tax hikes, the latest proposal for economic suicide.

The Democrats in Congress admit they are considering eliminating the tax breaks employers get on matching funds in employee 401k plans, which would naturally eliminate the incentive for employers to contribute matching funds. But Uncle Sam would ride to the rescue with a meager check, and in one swipe, the Democrats would have co-opted the largest private retirement savings and investment vehicle in the country, on behalf of the federal government.

Why does this not sound like a good deal? Especially since those harmed most would be low and middle income workers, who must rely on those 401k dollars to live in their senior years. Responsible, planful people have 401k's because the Social Security system is headed off a cliff, and they know it.

The political left is about fostering more government dependency, and they figure undermining the retirement savings plans of the millions of American citizens of all income levels who have 401k 's is a damned effective way to do it.

This idiocy is just in the proposal stage, although the Dems admit "it's part of the discussion". An academic with an idea, naturally. The professor allows that under her plan "401k's can continue to exist, but they won’t have the benefit of the subsidy of the tax break."

Read more, including link to Ed Morrissey at OneNewsNow.com (via Bob Stolz)

Don't miss Ed's take.

More from James Pethokoukis (via IP)

Posted by dan at October 23, 2008 3:06 PM