U. S. Representative Jerry Nadler has a lot to say about retirement of the Middle Class. It is interesting. He is correct.
The state of Middle Class in the year 2013 is grossly diminished since 2008. Not only that, but, the private sector does not have pensions for retirees' anymore. So, the idea you can EARN a comfortable retirement is gone.
Then there is the Wall Street solution. Right? The Middle Class could increase their wealth quotient by participating in 401k or 401b. Oh, wait, a 401b is no longer available.
...Description of 401b (click here)The term 401b refers to the IRS tax code (401 is the section and b is the paragraph), however, the codes for the original plans are no longer available to view. Both the 401a and 401b retirement plans were replaced by the 401k and are governed by the same regulations regarding deferrals and mandatory withdrawal at age 70 ½....
But, 401k is not an answer either. It is nice to collect participating additions to retirement accounts by employers, but, most retirees are ending employment with a total of $70,000 in their accounts. Too bad about 2008. Gee whiz these things happen on Wall Street, ya know.
See, 401k was the 'modern day pension' after all. It was a way of throwing good money after bad with Wall Street and bouy did that prove to be the case.
And then there is that 'evolution' the 401 designation went through. 401a, 401b, 401c,...,401k...what's next?
So, what the Baby Boomers are retiring on is SSI. The average monthly income to most SSI recipients is $1400.00.
I'll tell you why the Chained CPI is the most outrageous proposal on the books. The average income to an American today is far less than that of the Baby Boomers. So, when the current generation retires, if the USA remains in limbo fiscally forever, they will be in dire straights when they retire.
This is where we came in with FDR and we all know how much Republicans hate FDR. It shows. Who is the Middle Class putting into office after all? Living for the bubble, are we? Or is that kind of investment so far outside 'the norm' of people working two to three jobs per week to make ends meet it can never be realized until it is too late. See, Hedge Funds brag about 'riding the bubble' with the ability to 'get out' in the 'nick of time.' That level of vigilance by owners of 401ks is not possible when working takes precedent over time off.
The state of Middle Class in the year 2013 is grossly diminished since 2008. Not only that, but, the private sector does not have pensions for retirees' anymore. So, the idea you can EARN a comfortable retirement is gone.
Then there is the Wall Street solution. Right? The Middle Class could increase their wealth quotient by participating in 401k or 401b. Oh, wait, a 401b is no longer available.
...Description of 401b (click here)The term 401b refers to the IRS tax code (401 is the section and b is the paragraph), however, the codes for the original plans are no longer available to view. Both the 401a and 401b retirement plans were replaced by the 401k and are governed by the same regulations regarding deferrals and mandatory withdrawal at age 70 ½....
But, 401k is not an answer either. It is nice to collect participating additions to retirement accounts by employers, but, most retirees are ending employment with a total of $70,000 in their accounts. Too bad about 2008. Gee whiz these things happen on Wall Street, ya know.
See, 401k was the 'modern day pension' after all. It was a way of throwing good money after bad with Wall Street and bouy did that prove to be the case.
And then there is that 'evolution' the 401 designation went through. 401a, 401b, 401c,...,401k...what's next?
So, what the Baby Boomers are retiring on is SSI. The average monthly income to most SSI recipients is $1400.00.
I'll tell you why the Chained CPI is the most outrageous proposal on the books. The average income to an American today is far less than that of the Baby Boomers. So, when the current generation retires, if the USA remains in limbo fiscally forever, they will be in dire straights when they retire.
This is where we came in with FDR and we all know how much Republicans hate FDR. It shows. Who is the Middle Class putting into office after all? Living for the bubble, are we? Or is that kind of investment so far outside 'the norm' of people working two to three jobs per week to make ends meet it can never be realized until it is too late. See, Hedge Funds brag about 'riding the bubble' with the ability to 'get out' in the 'nick of time.' That level of vigilance by owners of 401ks is not possible when working takes precedent over time off.
April 11 — To the Editor:
...What confounds me is the astronomical pay of corporate chief executive officers, especially those who don't pay their employees a living wage, for instance, Walmart owners, many of whose employees need welfare to survive. Locally, what bothers me lately is the big hotel owners who have come to Portsmouth, marred our sky/landscape, and expected the public citizenry to fund the increased parking demands they have caused. Developers who create a need should include accommodations for that need in their own plans, plus reciprocate the community off which they are making huge profits, reaping multiples of what the highest-paid public servant earns....
What this retiree clearly illustrates is that Corporate Welfare is occurring on the back of the Middle Class. It is occurring at the state and local level and now there is suppose to be more at the federal level. I don't think so. President Obama has gone out of his way to create a 'kumbaya moment' with many Republicans, but, it is being used to hold the nation hostage over the debt.
Paul Ryan is a ruthless man that could not hold his seat in the House without running for Vice President, no different than Michelle Bachmann and her run for the nominee. The 2012 elections for the Republicans was about 'holding on' when they should be gone and Chained CPI is more proof.
Saturday, 13 April 2013 10:14By Alexander Arapoglou and Jerri-Lynn Scofield, AlterNet | Report
10 ways the current tax code (click here) allows the rich to accumulate vast fortunes, subject to little or no tax. And, unlike the offshore account tax fraud that gets so much press and regulatory attention, many of the most egregious tax avoidance scams are perfectly legal.
1. No income means no tax. Imagine two men living in the same town. Joe owns an oil exploration corporation. Pete, a geologist, works for Joe. Pete finds oil, billions of dollars worth, and when he does, Joe gives him a $1 million bonus.
Pete pays income taxes on $1 million and keeps looking for oil. Joe, the boss is now a billionaire. Although he has not sold any oil yet, the bank lends him money against the find and he builds a mansion, buys a nice car and lives it up. Even though Joe has become richer by billions of dollars, he pays no income tax. Why? He has no income....
America needs to stop undercutting their right to a secure retirement over any idea that is going to help pay down the national debt. The national debt has absolutely nothing to do with Earned Benefits. Nothing.
If Americans want to solve the National Debt problem they need to realize it is about taxes and the size of the tax base. Adding poor paying jobs to the tax base isn't going to address the national debt in a real way. There has to be an increase in high income earners and closed loopholes.
Remember how legislators stated the yacht builders were go out of business if the tax deduction was ended? Well, let's explore that and Americans can begin to understand how Corporate Welfare hurts the USA economy and provides a slippery slope to deficits which are masked by the Republicans as related to Earned Benefits.
Cabin Cruisers can cost as little as $15,000 when purchased used. The price goes up as the features and length of the yacht increases. A 65' luxury yacht is advertised on the web for $2,199,000.
In 2009, a new 20-foot cabin cruiser cost under $50,000, a 30-foot weekender yacht cost around $200,000, 50-foot cruisers were around $1,000,000, and 100-foot plus yachts ranged from $8-10 million.
According to an article in Forbes, the most expensive yachts in 2005 had an average price of $64.37 million. with the most expensive, a 280 foot mega yacht, costing $103 million. The least expensive, a 157 footer, was $24 million. Since those are 2005 prices, it's safe to assume that the costs would be noticeably higher now.
Ongoing costs of owning a yacht are quite high and need to be considered before purchasing one. It wouldn't be any fun to purchase one only to find out that your budget didn't allow the costs of maintaining it and taking it out on the water!
Who can actually afford this mess? Not that watercraft is not fun, sure, many people like to fish and water ski and even participate in boat races / regattas. But, most Americans can't afford yachts, so the idea this is a vital part of the USA economy is nonsense. But, let's take this one step further.
Sailboats are considered a form of a yacht. The cost is usually around $1500.00 per linear foot. So, the idea is reasonable that a 20 foot sailboat costing about $30,000 places this item within the reach of the Middle Class as if purchasing a car. Upper Middle Class is more likely the price point, but, Middle Class no less. If one can purchase a Lexus, they can purchase a 20 foot sailboat. Starting to see this the way I am yet?
These folks are probably executives, or a two income family where each income is at least $40,000 per year, doctors, lawyers, small business owners with a couple of kids, a dog or two and / or cats, 401Ks, ? maybe ? other investments, but, basically comfortable folks. Right? They purchase a sailboat because it is more 'their style' on the water. So, their purchase of a sailboat is buoyed by a tax deduction. It is all made clear to them when they purchase this vehicle and they count on it to make ends meet and continue their lifestyle.
Now comes 2008. Economic hardship follows. The economy is contracting, corporations find it a good time to reorganize and eliminate middle management and a few upper management here and there. What happens to these folks now? Do they keep the sailboat? No. They will be relieved if both are still pulling in $40,000 per year. What happens when one is laid off? Contraction of their personal economy, right? One $40,000 annual payroll added with unemployment doesn't cut it, does it?
It isn't necessary for the million / billionaires to have a tax cut to purchase or maintain their yacht. They'll keep the vehicle through hard times. They may even buy a new one if the boat builders feel the pinch to sell inventory to continue their cash flow. But, where these tax cuts become hideous and ridiculous is where 'they snare' the Middle Class and eventually cause hardship when the economic bubble breaks. What happens to these folks? Do they keep their house? Foreclosure? Do they eventually declare bankruptcy? Sure they do.
The sailboat will be the first thing to go, but, because they have made a silly investment in a lifestyle aboard a sailboat which they might even hope would have been a blessing in their retirement, they will lose everything rather than having higher equity in their primary investments, ie: home, retirement funds.
What these tax cuts do is snare people that would be better off investing their monies elsewhere. There are a lot of people that get caught up in what their money will buy rather than what their money could provide, namely comfort.
These tax loopholes are poison to the USA economy. They have go. The revenues to the USA Treasury has to take place and it needs to happen now. We need financially secure citizens, not ones so gregarious about their "Life is Good" they make mistakes that will devastate their lives because Wall Street has engaged draconian investments and 'missed the top of the bubble.'
I have absolutely no worries about ending loopholes. It will fine. If the only one that remains is the Housing Tax Deduction then that is the American Dream, but, all this other mess HAS GOT TO GO!
Yacht Costs (according to Forbes)
The purchase price of yachts varies. A 20 to 40 foot yacht, more commonly called cabin cruiser, is going to cost much less than a 100 to 200 mega or super yacht. There are also costs of ownership to consider.Cabin Cruisers can cost as little as $15,000 when purchased used. The price goes up as the features and length of the yacht increases. A 65' luxury yacht is advertised on the web for $2,199,000.
In 2009, a new 20-foot cabin cruiser cost under $50,000, a 30-foot weekender yacht cost around $200,000, 50-foot cruisers were around $1,000,000, and 100-foot plus yachts ranged from $8-10 million.
According to an article in Forbes, the most expensive yachts in 2005 had an average price of $64.37 million. with the most expensive, a 280 foot mega yacht, costing $103 million. The least expensive, a 157 footer, was $24 million. Since those are 2005 prices, it's safe to assume that the costs would be noticeably higher now.
Ongoing costs of owning a yacht are quite high and need to be considered before purchasing one. It wouldn't be any fun to purchase one only to find out that your budget didn't allow the costs of maintaining it and taking it out on the water!
Who can actually afford this mess? Not that watercraft is not fun, sure, many people like to fish and water ski and even participate in boat races / regattas. But, most Americans can't afford yachts, so the idea this is a vital part of the USA economy is nonsense. But, let's take this one step further.
Sailboats are considered a form of a yacht. The cost is usually around $1500.00 per linear foot. So, the idea is reasonable that a 20 foot sailboat costing about $30,000 places this item within the reach of the Middle Class as if purchasing a car. Upper Middle Class is more likely the price point, but, Middle Class no less. If one can purchase a Lexus, they can purchase a 20 foot sailboat. Starting to see this the way I am yet?
These folks are probably executives, or a two income family where each income is at least $40,000 per year, doctors, lawyers, small business owners with a couple of kids, a dog or two and / or cats, 401Ks, ? maybe ? other investments, but, basically comfortable folks. Right? They purchase a sailboat because it is more 'their style' on the water. So, their purchase of a sailboat is buoyed by a tax deduction. It is all made clear to them when they purchase this vehicle and they count on it to make ends meet and continue their lifestyle.
Now comes 2008. Economic hardship follows. The economy is contracting, corporations find it a good time to reorganize and eliminate middle management and a few upper management here and there. What happens to these folks now? Do they keep the sailboat? No. They will be relieved if both are still pulling in $40,000 per year. What happens when one is laid off? Contraction of their personal economy, right? One $40,000 annual payroll added with unemployment doesn't cut it, does it?
It isn't necessary for the million / billionaires to have a tax cut to purchase or maintain their yacht. They'll keep the vehicle through hard times. They may even buy a new one if the boat builders feel the pinch to sell inventory to continue their cash flow. But, where these tax cuts become hideous and ridiculous is where 'they snare' the Middle Class and eventually cause hardship when the economic bubble breaks. What happens to these folks? Do they keep their house? Foreclosure? Do they eventually declare bankruptcy? Sure they do.
The sailboat will be the first thing to go, but, because they have made a silly investment in a lifestyle aboard a sailboat which they might even hope would have been a blessing in their retirement, they will lose everything rather than having higher equity in their primary investments, ie: home, retirement funds.
What these tax cuts do is snare people that would be better off investing their monies elsewhere. There are a lot of people that get caught up in what their money will buy rather than what their money could provide, namely comfort.
These tax loopholes are poison to the USA economy. They have go. The revenues to the USA Treasury has to take place and it needs to happen now. We need financially secure citizens, not ones so gregarious about their "Life is Good" they make mistakes that will devastate their lives because Wall Street has engaged draconian investments and 'missed the top of the bubble.'
I have absolutely no worries about ending loopholes. It will fine. If the only one that remains is the Housing Tax Deduction then that is the American Dream, but, all this other mess HAS GOT TO GO!
