I heard a hint of this a few months ago – and I remember thinking: How in the world are people going to be forced to save? Well, here’s the beginning of it.
You don’t get to choose whether you want this deduction or not, your employer will have the right to deduct and you will have to OPT OUT if you do not want it. (Which is backwards.)
In Obama’s radio address today he outlines steps to get people to save for retirement. I think this is the beginning of the end of social security.
The new federal steps, which do not require congressional action, include:
Making it easier for small companies to set up 401(k) retirement savings plans in which all workers are automatically enrolled unless they ask to be omitted. Employers can set default amounts of each worker’s pay—perhaps 3 percent—
Allowing such plans to automatically increase the amount that workers save over time unless the workers object.
Allowing people to check a box on their federal tax returns asking that any refund be sent as a savings bond.
“This recession has not only led to the loss of jobs, but also the loss of savings,” Obama said. [Unemployment now at 9.7 and steadily climbing.]
“If you work hard and meet your responsibilities, this country is going to honor our collective responsibility to you: to ensure that you can save and secure your retirement. That is why we are announcing several common sense changes that will help families put away money for the future,” Obama said.
[Side note: ” While saving for retirement is universally seen as a good idea, any increase in savings rates could somewhat slow the nation’s rebound from the economic recession.”]
And this from Tax Cheat Tim Geithner:
“Just as the administration is dedicated to reviving the economy and getting people back to work, [ha ha ha ha – 9.7, highest unemployment in 26 YEARS] so too it is dedicated to helping put retirement security within the reach of all Americans,” Geithner said in a statement.
Another note: In order to participate in ANY of it, one will need a job. Say, buddy, can you spare a dime?
But Dear Leader knows best. “Save your money, and I mean it.”