Democratic presidential candidates are in a race to present their greatest Tax Hikes to voters. Now they are not only threatening seniors’ income but also threatening our retirement savings.
Retirement security is in real and present danger
This means our future retirement security is in danger. Do you want to retire and live at the tender mercies of the federal government? Bernie’s bomb is called “Inclusive Prosperity Tax.” Lieawatha Fuaxcahontas calls her theft of your savings “Accountable Capitalism.”
Those proposals are example of confiscatory taxes all the Democrats are supporting. We have already paid taxes on our savings. Adding insult to injury they are joined by Kamala Harris. Harris also wants to include a tax on every stock, bond, and derivative transaction.
Financial transaction tax
The financial transaction tax is a range of 0.5 percent to 0.2 percent tax on stocks, 0.2 percent to 0.01 percent of bonds, and 0.005 percent on derivatives. According to research by James Angel, this is really a tax on investors. Financial intermediaries would simply raise fees and expenses on mutual funds, 401(k)s, IRAs and Pensions. Ordinary investors and savers would bear the burden of the tax.
Promises and claims are easy… but are they credible?
Let’s look at Lieawatha Fuaxcahontas’ idea. She presents “Empowering Workers through Accountable Capitalism.” She claims she is trying to redefine, reshape and broaden “corporate accountability.” She is not interested in increasing shareholder value.
The obligation of the typical U.S. corporation would be to reconfigure its board of directors. The change removes people with industry knowledge and experience who represent shareholders. Not only does she want confiscatory taxation but she does not want owner representation on the board of directors. Can you say bad judgment?
Why did we do ERISA again?
Adding these items to corporate responsibility makes compliance with the Employee Retirement Income Security Act of 1974 (ERISA) significantly more challenging. ERISA law sets minimum standards for most retirement plans in private industry. It provides protection and maximization of long term returns for individuals enrolled in these obligations. Lieawatha Fuaxcahontas’ vision of “accountable capitalism” would destroy savings built over a lifetime. It will sink the economy that’s according to former Sen. Phil Gramm and economist Mike Solon.
The U.S. stock market is now over $34 trillion capitalization. The rest of the world’s markets total $44 trillion in capitalization as of 2018. Retirement funds own over 50% of U.S equities. Total U.S. retirement assets include pensions, 401(k)’s and IRA’s. They reached $29.8 trillion in June 2019. Retirement assets account for 33% of all American household financial assets.
How do retirement savings help the economy?
Our country is now 43% of global market value, even though we have only 17% of the world’s stocks. American companies are significantly bigger in the global market for a reason. Our companies thrive, prosper, and grow to incredible proportions. The Warren Social Security Plan inhibits this growth in the future. It increases taxes on Americans to finance free stuff give away.
Lieawatha Fuaxcahontas promises to increase current and future beneficiaries’ benefits by $200 a month. For $200 per month she would kill off investment and private retirement. That’s killing the goose that laid the golden egg. But at least it is consistent with the party platform of killing babies and old people because they don’t contribute more than they cost. Unfortunately without them there is no future.
It costs what? And who pays?
This idea would cost more than $150 billion annually. It is fed by a 14.8% tax on investment income of the rich. If you believe Lieawatha Fuaxcahontas the rich can pay for everything. Most of us got over that notion when we realized our parents don’t have unlimited wealth. Addition, there would be an increase in payroll taxes by both employers and employees.
Even assuming that her plan works, it would defeat her own agenda. Her agenda is nominally to “help” impoverished senior citizens. We understand that in the real world, wealth taxes harm all Americans. They kill family businesses. They damage the future of the country by taking control of business through government action. That is called fascism.
Warren’s wealth tax appears clearly targeted. The reason this major tax would impact Middle America is because wealth is invested. It is invested not simply in homes and financial markets. Investment occurs in a range of businesses, commercial ventures, and it supports innovations. All of these things necessarily precede all employment. Missing from her proposal is replacement of the benefits to the private economy and our standard of living lost to the government.
Let’s understand this for what it is. A report from the liberal group Public Citizen, argues that most families have nothing to fear from new financial transaction taxes. Only half of us have retirement accounts. These taxes bypass the middle class while “surgically targeting resources being tied up by the wealthiest Americans to be repurposed for better uses.” So what that means is those who have saved for retirement are targets. It also means Lieawatha Fuaxcahontas wants us all on the government dole.
Hope and change… to what?
There is a memorable Greta Garbo quote from the classic 1939 film Ninotchka: “The mass taxes have been a great success, there are going to be fewer wealthy but better Americans!” What an ill-informed understanding of the regressive and harmful nature of collectivism. This is what passes for public policy at this point. Just ask a Socialist. Do you want AOC handling your retirement finances? That’s what we are talking about here.
Warren Wants AOC Responsible for Your Retirement. How did we get here? Has nothing been learned by our recent prosperous years of economic growth, historic wage, productivity and employment gains in every demographic? Republicans have failed to explain reasoned and reasonable policies to the American people. Let’s bring reason and facts back in the political dialogue.