Earlier I wrote a blog regarding lucrative retirement agreements made with State, Federal and Union entities.
These accounts are referred to as 3 for 50 retirement accounts. You can read my blog here: http://activerain.com/blogsview/1504081/3-for-50-retirement-accounts-bankrupting-states-and-unions
- The question is - how do we get out from under this unsustainable debt our States and Federal government have reaped upon us?
The President has just signed a bill to convene a bi-partisan committee whose job it will be to report on measures to reduce our deficit.
The first comment that comes to mind - Mr. President - lock the checkbook in a drawer!
Some of the solutions this committee is likely to recommend are outlined in a blog by Dale Terry http://activerain.com/blogsview/1502321/deficit-committee-already-a-failure-
As you read them you will see a large focus is on Social Security, Medicare, Medicaid and individual tax deductions.
- Who is impacted by these initiatives? Those who are on fixed incomes, low income or the middle class who rely on their tax deductions. The largest tax deduction in the cross hairs are home interest and real estate taxes.
Don't think for one minute that politics does not impact your real estate business.
- As a Realtor we point out to new home buyers the advantage of home ownership as it relates to tax obligation.
- The new homeowner will either receive a larger refund, or will be able to reduce their tax payments via their pay checks.
- The lower tax liability allows them to spend more for their mortgage payment.
The solutions likely to be considered are targeted at the least capable members of our society. That alone should outrage all of us.
As a start - do something about these Golden retirement accounts. Don't continue to tax us to pay for them, and turn around and hammer us again to clean up your deficit.
- When Pan Am went out of business decades ago all employees lost their retirement. There is not expectation of a guarantee with any company in this country. If they are financially insolvent - everyone loses.
Why should state, federal and union employees be exempt from financial hardships?
- Most of those employees during their working years are making double and triple what the average American earns.
- They enjoy Cadillac health care plans and the guarantee of a lucrative retirement.
- They enjoy a higher standard of living than the average American.
- All at our expense.
If you can reduce Social Security which we paid into, then reduce all of these Golden plans which are nothing more than perks.
- Social Security is a contract for a retirement account. We pay through payroll deductions, the government invests our money, then returns it to us in monthly payments for the rest of our life. The government is not giving us something for nothing.
- The only reason Social Security is nearing bankruptcy is because every administration has borrowed against the funds on deposit. Our government has plundered and spent the funds. Not the recipients.
In the case of the 3 for 50 plans, the employee IS getting something for nothing. They did not contribute to the account. They should have no expectation of protection.
Secondly, institute a flat tax and exempt low earners entirely. Eliminate the IRS.
- The IRS is a government entity totally out of control. They spend more to collect less. They target low income taxpayers who are not in a position to hire tax attorneys to fight them.
They pursue the little guy relentlessly to collect a meager $10,000.00 in taxes and penalties as a result of an innocent error.
The Leona Helmsley's of the world are rarely pursued. Most well heeled tax payers can afford to hire professionals to beat down the IRS.
Most of us do not mind making a sacrifice to reduce the deficit being passed along to our children. We want it to be fair and equitable.
If anyone experiences financial pain - all should experience it, in proportion to their financial ability to pay.