Obama was on TV today Oct. 13, 2008 saying he wants us to take $10,000 out of our 401(k) and tax deferred retirement savings tax free to help stimulate the economy.
Simultaneously, he wants stimulus to credit card, car loan and business loan companies to lend us more money.
Duh! Isn’t too much debt and lack of savings what got us into this mess?
Barry, the reason there are tax penalties on early withdrawals from 401(k) and other retirement plans are twofold:
(1) We are supposed to accumulate our savings long term so the money is there when we retire.The tax penalty on early withdrawal is to prevent people from doing stupid things like stealing from their retirement for current pleasures. There is a concept called Deferred Gratification, but Barry wouldn’t know about it because his entire life has consisted of charities and taxpayers fulfilling his every need everey day of his life. Barry took a four month trip around the world after his sophomore year in college without ever having worked a day in his life. Barry went to Indonesia, Pakistan and Africa with his Two Pakistani Muslim friends who today control his Presidential campaign finance. Where did the money come from for his “Round the Muslim World” sophmore trip, and where does the money actually come from for his current campaign?
(2) All retirement accounts are rstricted to investments which help build the economy. Retirement accounts are either banking deposits, stocks and other instruments which supply capital to build the capitalistic economy. In case you have not noticed Barry, the government is taking a trillion dollars of taxpayer money to increase the capitalization of the same companies that will lose capital when people withdraw $10,000 from their retirement accounts.
So with one hand Barry will take money out of retirement capital investments, while the other hand uses tax payer dollars to inject capital into the companies from which the withdrawals come/
This is economic insanity. But if Barry has never been part of the economy, how can we expect him to know anything? I gues I am unfair to Barry for exposing his insane ignorance of the economy. More here