Search This Blog

Monday, April 25, 2011

The Republicans Are Wrong!

The Republicans Are Wrong!
Recently, Wisconsin Representative Paul Ryan’s 2012 budget bill passed the US House of Representatives by an overwhelming margin, but without one Democratic vote in support.  It will pay down the scandalous deficit incurred by the Obama-Reid-Pelosi troika by some $6 trillion dollars without raising taxes, and will save Medicare.  In fact, it will create jobs—the only proven way to create jobs—by reducing taxes.  It’s not rocket science.  The record shows that the only way to create jobs is to lower tax rates.  And when you do so, tax revenues actually increase as unemployment declines.  That’s what Jack Kennedy did and what Ronald Reagan did and in both cases it brought America out of hard economic times by expanding the economy and creating jobs.
Predictably, the Democrats who had vast majorities in both the House and Senate from 2008 to 2010, yet failed in their Constitutional responsibility to pass or even bring up a budget bill, are now screaming that Republicans want to destroy Medicare and Social Security (the Ryan plan doesn’t actually touch Social Security at all).  It’s a lie, but it’s a politically explosive lie that they have used effectively for more than 50 years to deceive the American people.  But perhaps they have cried “wolf” once too often.

The Democrats know as well as the Republicans that both Medicare and Social Security are insolvent.  Of course, another word for insolvent is bankrupt.  In fact, if an insurance company (and don’t forget that the Democrats under FDR sold Social Security as insurance) had been as badly mismanaged as Social Security, its officers and directors would have been in jail.  We could call Social Security a Ponzi scheme or perhaps a Madoff scheme, but frankly that would be unfair to both Ponzi and Madoff.  Ponzi and Madoff were piker’s compared to the Democrats.

But the Republicans are wrong when they say that the Democrats don’t have a plan to bring down the multi trillion dollar debt that the Democrats have created in just two years under Obama.

The Democrats have a plan.  It’s called a Guaranteed Retirement Account (GRA) and while it won’t provide a long term solution to balancing the budget, it will transfer the money you (and your employer) have placed into your 401(k) plan into the general treasury of the Federal Government.  It could mean a windfall of hundreds of billions, even trillions of dollars for the big spending Democrats in Congress.  That’s why they want to seize your 401(k) and IRA funds.  This money will also be used to bail out Union pension funds and to provide a retirement fund to those who have not been as responsible as you have been in setting aside funds for your golden years.

The GRA idea comes from Professor Theresa Guilarducci who, at her website (
) bills herself as a “labor economist and nationally-recognized expert in retirement security.”  Professor Guilarducci is apparently the guru for the Democratic leadership when it comes to saving Social Security.  On October 7, 2010 US Senator Tom Harkin (Iowa) who Chairs the Health, Education, Labor and Pensions Committee, held a hearing featuring Professor Guilarducci.  Here is a direct quote from the distinguished professor taken from a leftwing blog:

        “I propose…that the Congress allow workers to swap out their
        401k assets…for a Guaranteed Retirement Account.  Just a
        one-time swap, trading your 401(k) for a Guaranteed Retirement
        Account that will be composed of the equivalent of government
        bonds that pay a 3 percent real return.”

This sounds reasonable enough, except that it’s really not a voluntary swap.  In fact, the good Professor’s plan also calls for abolishing the tax deductibility of your current 401(k) program, thus making you immediately liable for a huge tax payment to the government if you decide not to participate in their latest socialist scheme.  Of course, at that point any future contributions into your 401(k) would also be taxable.  In short, the Guilarducci plan would destroy the most successful retirement plan in the history of the United States and it would likely apply to IRAs, SEPs, etc.—any one of the current plans that lets responsible Americans set aside funds for their retirement needs.

But it gets worse.  In addition, whether you chose to participate or not, you would be subject to an immediate 5% tax on earnings to pay for your GRA and for those who do not currently have a 401(k).  Yes, this is just another Marxist redistribution of wealth program.  The liberals call it a “social justice” economic plan.  It transfers funds from those who are responsible and hard working to those who have not been as responsible.
And, by the way, a cursory review of Teresa Ghilarducci’s website did not ever refer to her Guaranteed Retirement Account as being voluntary.  It did, however, contain articles by the good Professor attacking 401(k) plans.  But rest assured, in 2008 The New York Times Magazine named the GRA Plan one of the best ideas of the year.  I’m sure we can all rest easy knowing that.

Nice.  First they take the money you have saved up for retirement and give you back a pittance and then they add an additional tax so that others who were not as responsible as you can receive a pension that you pay for.  And you can be absolutely certain that just like Social Security, Medicare and every other socialistic scheme that 5% tax will soon be much, much higher.  And when the 401(k) funds they have stolen from you is gone, what then?

We would be back right where we are today, facing the financial collapse of our nation due to crazy and irresponsible liberal spending of the Democratic leadership in both Congress and the White House.

It’s not just the liberal Democrats in Congress that are behind this insidious plan.  The Obama White House is on board too.  In fact, in February of 2010, “Crazy Uncle” Joe Biden, our distinguished Vice President put the Administration firmly behind the GRA plan with the release of the Annual Report on the Middle Class.  The VP headed up this White House Task Force which generated a 43 page document that called for the creation of Guaranteed Retirement Accounts.  So there you have it folks.

The Republicans have wrongly accused the Democrats of not having a plan to bring down the deficit.
The Democrats do have a plan.  It’s called Guaranteed Retirement Accounts.
So let the debate begin.
It’s time for the Republicans to go on the offensive.

It’s time for the Democrats to defend their plan to destroy your 401(k) plan, raise taxes and force you into another government scheme that will (maybe) give you a 3% return (while taxing you an additional 5%).

Before the GOP begins to respond to the false accusations that they want to destroy Social Security and Medicare, let’s demand that the Democrats explain why they want to destroy your 401(k) program.  The former claim is bogus, the latter is not.

It’s time to stop being the stupid party and take the fight to the Democrats.


No comments:

Post a Comment