Taxing Retirement
Taxing Retirement
Aloha kākou and Happy Aloha Friday. Looking forward to retirement? Squirreled away all that money into a 401K, pension plan, stocks and bonds, and personal savings. and a swear jar. Now the government wants to come in and rebalance your portfolio. You'll lose your money because the government investments deliver reduced profits. The fiduciary responsibility of your money manager to maximize profits is watered down by the government ESG mandates.
A bill that would prioritize environmental, social, and governance factors (ESG) will reduce your financial benefits. Planet survival over people's retirements and standard of living. Your piece of the pie is confiscated to the government as an environmental tax on your investment profits. That includes property ownership, your home and land.
House Speaker Kevin McCarthy signed a bill that would nullify a Department of Labor rule that would have forced retirement plan investment managers to invest money in poorly performing investments. The Labor Department Rule would have eliminated a ten percent in realized returns and would yield only half or less of the original return of investment. That return on investment goes to social justice environmental causes. You don't have a choice. The government highjacks your savings to fund their environmental infrastructure plans.
Part of any investment in stocks is real and unrealized gains. Realized gains are those that have been actualized by selling an existing position for more than what was paid for it. An unrealized ("paper") gain, on the other hand, is one that has not been realized yet. Realized gains result in a taxable event, but unrealized gains are typically not taxed. Pedo-Hitler Biden put this in his billionaire's tax proposal. However, it will affect more working-class investors with 401K and pension plans.
This proposal is alarming as it would drastically expand the IRS’s powers and create new complexity in the tax code. It could grow to hit millions of Americans over time, harm the economy, and is highly likely unconstitutional. The government cannot tax money that is not realized. That is not paid to you in cash. You haven't received it as a realized gain. The fact that they're proposing this is frightening. It is true government theft.
The rule in question, established in December 2022, undid a prior Trump-era protection that required fiduciaries to evaluate investments based solely on whether they enhance retirement savings. But now, investment plan fiduciaries can place retirement savings into ESG investments without the consent of employees. The bill goes back to Pedo-Hitler Biden where I suspect the fool on the hill will veto the bill. What this rule does is double tax Americans income to pay for more government waste and fraud.
The American taxpayers deserve to have the highest rate of return so that they can enjoy retirement to the fullest. But Marxist democrats want to take your money and invest it in losing environmental social and governance investments. Barry the Bullshitter Obummer tried a similar retirement scheme to confiscate 401K's and pension plans. The government reasons that your savings can be better managed by the government. Just as they mismanaged your Social Security and Medicare savings.
Under the premise that your retirement money can be better managed by the government, Obummer proposed a plan stating that your 401K money is just sitting around and doing nothing. He said the government can make better use of your money to pay off the national debt and still bring a better return on investment. Anyone remember that scheme? I do.
This is exactly what Pedo-Hitler Biden is proposing by forcing retirement plans to invest in ESG stocks that would fund government [waste] projects. People need to realize that the government looks at your money as theirs. You didn't earn that money, someone else earned that money and you need to give it back to the government.
The government printeth money and the government taketh away. That's how the Marxist democrats think. All money is finite and comes from the same pie and that pie can only be divided into so many slices. Moochelle Obummer said, "Someone going to have to give up some of their pie so others can have more."
The government will try to tell you that they are 'investing' your money and you won't lose your capital. But the government will use your money immediately to pay for their unprecedented trillion-dollar budget deficits, leaving nothing to back up their political promises, just as they have raided our Social Security trust funds. This is why every year they claim they must raise the debt ceiling to continue to mismanage government spending. Your taxes go up, interest rates go up, cost of living goes up, and the government continues to print money that loses its value.
This is typical of what Marxist democrats and RINO repubics propose when defining the budget. It's not really a budget when the government spends more than they take in. We are the government's credit card, and the government is over its spending limit. Last year, the Senate passed a spending bill without debate and now they want the House to allocate money. A spending bill that nobody read before passing it. This is how business is conducted in Congress. They act like children with their parent's credit card. Once it reached its limit, they grab another credit card and continue spending.
This will dig into all retirement plans. Regardless of whether they project a ten-year reduction in overall spending. It's money that will end up as waste and fraud. It reduces the currency value and reduces the spending power of our savings and retirement. I need to emphasize that the economy can be put back on track starting with energy which holds the key to reducing the deficit. Deregulation and reducing government interference in the markets.
A reminder that we were there 3 years ago when interest rates were low, and the markets were roaring. Energy was cheap and the cost of living was affordable. Good paying jobs were plentiful, and the world was at peace. In just three short years all that changed under Marxist democrat rule. Remember when the Fake News Media gleefully said the adults are back in charge? Now they spend all their time blaming the previous administration for this regime's Build Back Blunders. Want to save your retirement future, then vote like your lives depend on it, because it does.
Today’s Weather: Overcast and scattered rain showers. 60% chance of precipitation. Tradewinds from the northeast at 9 mph, gusts 19 mph. Cloud cover is 73%. Visibility is 10 miles. We got 1/8 inch of precipitation in the rain gauge overnight. Temperatures are in the low 70s. Humidity is 72%. Barometric pressure is 29.94 inches and dewpoint is 67°. UV index 8 Air quality Index is poor at 57. Readings taken at 12:00PM HST.