Bipartisan Insanity: Senate raids pensions to spend more

June 28, 2012 05:23

Congress is compromising the solvency of private pension systems to get more tax dollars.- Washington Examiner



From The Washington Examiner


Today, we are learning about the latest example of bipartisan insanity as we hurry toward the fiscal cliff.


Democrat and Republican leaders are quietly planning to combine a new highway bailout with a student loan bailout. All of this is to be paid for by raising new taxes and raiding private pensions. Adding to this mess, a reauthorization of the federal flood insurance program may be added to this mega-bailout bill, with a new mandate that requires more people to purchase flood insurance even if they live in very low risk areas.


he potential deal, which will extend the supposedly temporary student loan subsidies for roughly two percent of the population, will likely be paid for by reducing contributions to private pensions. The tradeoff goes like this: Congress lets businesses change the way they calculate funding requirements so that they can put less money into their pension systems, and the money they don’t put into pensions gets taxed and generates $9 billion in new tax revenue.


The difference is, there will be less money available to pay benefits when they come due.


Help Make A Difference By Sharing These Articles On Facebook, Twitter And Elsewhere:

Interested In Further Reading? Click Here