http://www.usnews.com/…

House Democrats recently invited Teresa Ghilarducci, a professor at the New School of Social Research, to testify before a subcommittee on her idea to eliminate the preferential tax treatment of the popular retirement plans. In place of 401(k) plans, she would have workers transfer their dough into government-created “guaranteed retirement accounts” for every worker. The government would deposit $600 (inflation indexed) every year into the GRAs. Each worker would also have to save 5 percent of pay into the accounts, to which the government would pay a measly 3 percent return. Rep. Jim McDermott, a Democrat from Washington and chairman of the House Ways and Means Committee’s Subcommittee on Income Security and Family Support, said that since “the savings rate isn’t going up for the investment of $80 billion [in 401(k) tax breaks], we have to start to think about whether or not we want to continue to invest that $80 billion for a policy that’s not generating what we now say it should.”

http://www.workforce.com/…

Under Ghilarducci’s plan, all workers would receive a $600 annual inflation-adjusted subsidy from the U.S. government but would be required to invest 5 percent of their pay into a guaranteed retirement account administered by the Social Security Administration. The money in turn would be invested in special government bonds that would pay 3 percent a year, adjusted for inflation.

The current system of providing tax breaks on 401(k) contributions and earnings would be eliminated.

“I want to stop the federal subsidy of 401(k)s,” Ghilarducci said in an interview. “401(k)s can continue to exist, but they won’t have the benefit of the subsidy of the tax break.”

Under the current 401(k) system, investors are charged relatively high retail fees, Ghilarducci said.

“I want to spend our nation’s dollar for retirement security better. Everybody would now be covered” if the plan were adopted, Ghilarducci said.

Argentina did it… why not the USSA?

http://www.lewrockwell.com/…

In late 2007, Richard Stengel wrote a cover story for Time magazine calling for a massive national service program to be imposed on American young people. If you’d like to read it, knock yourself out. Someone probably needs to smash it, but the avalanche of propaganda and nationalism you’ll find there was too demoralizing for me to attempt it. The very idea that helping someone in your neighborhood should be called “service to the nation” should be spooky and Orwellian enough, but for many people I guess it isn’t.

One thing I couldn’t get out of my head, even though it’s not by any means the weirdest aspect of the program, is Stengel’s proposal for a Cabinet-level Department of National Service. I think it was this piece of advice that struck me the most: “And don’t appoint a gray bureaucrat to this job; make it someone like Arnold Schwarzenegger or Mike Bloomberg, who would capture the imagination of the public.”

Translation: the American people, too stupid to engage in government-approved service projects without being prodded by their betters, need a crowd-pleasing Hollywood actor to rouse them to action. Bloomberg, possibly the dullest human being in public life, would be a better choice than Schwarzenegger from my point of view: the American people would barely be able to keep awake through one of his droning appeals.

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