Yesterday I noted that a few House Democrats are looking at a way to grab everyone’s pensions by eliminating the tax breaks for 401(k) system and requiring everyone pay 5% of their income to the government. In return for that 5% of your income, you would get $600 from the government each year. And your funds would be invested in government bonds for a 3% return. That alone is frighting but we’re learning more that’s even worse. From WSJ’s Best of the Web:
Ghilarducci outlined her plan last year in a paper for the left-liberal Economic Policy Institute, in which she acknowledges that her plan would amount to a tax increase on workers making more than $75,000–considerably less than the $250,000 Barack Obama has said would be his tax-hike cutoff. In addition, workers would be able to pass on only half of their account balances to their heirs; presumably the government would seize the remaining half. (Under current law, 401(k) balances are fully heritable, although they are subject to the income tax.)
A 50% death tax? If these Democrats are really going to try and push this on the American people, they will have an American taxpayer mutiny on their hands.