First of all let's set aside the tinfoil hats for a minute or two.

I think it's pretty obvious that most Americans are financially illiterate. This, IMO is the root of the problem.

Just an FYI, about 70% of American companies already make these retirement vehicles available on a voluntary basis.

The article does NOT say that ...."Congress will pass a law making mandatory that employees put money in a 401 or 403"
It DOES say EMPLOYERS will be required to set those funds aside. It also says that employees can opt out of the program. Under today's law an employee has to opt IN.

I also fail to see how this is a tax on anyone. It's a tax break FCOL. When you or your employer puts money into your retirement account those funds don't go to the government. They go to your plan administrator, and are invested in your name. You actually are reducing your current tax liability by participating.

I do see how this could be a challenge for low wage employees who can't afford the reduced take-home pay...but they can opt out as long as they are aware of that in a timely manner.

It seems to me the better thing to do is make some financial education required at the high school level. Also, privatize social security. Low wage people pay it already. Let's allow them to invest it in something that will at least grow faster than .5% a year. Of course that will never happen.

The big danger I see with programs and laws like this is that eventually the federal government will also want to dictate what types of things you can invest in. No oil for sure.
Don't be surprised if you ,someday, are forced to buy US Treasury securities in your retirement accounts. Once that happens MMT will be complete. Government will spend without limit and require that the treasury debt is purchased by the same people paying the taxes to service that debt. Then they will tax you on the interest you earned while paying for the debt you were forced to purchase.
A Democrat dream come true

Thank you !! That's my point !! Plus any and everyone replying on this thread has the means to do that . Believe it or not some people are STRUGGLING !!!!!! 3 % out of a person making 12 bucks and hr will hurt if they don't have it to spare.....

Not really a fool. There are other vehicles to put your money into.

White let's say your correct. SOO dems have put another 3% tax on any and ALL businesses that have more than 10 employees. !!??? correct if I read this right. 3 % of the TOTAL employees salaries. ? Yes lot of companies are doing that now. But mom and pop bakerys , shops, and repair services are going to take a hit.

"The Bottom Line
Expectations of profitability, then, remain one of the leading constraints on banks’ ability, or better, willingness, to lend. And it is for this reason that although banks don’t need your money, they do want your money. As noted above, banks lend first and look for reserves later, but they do look for the reserves.

Attracting new customers is one way, if not the cheapest way, to secure those reserves. Indeed, the current targeted fed funds rate—the rate at which banks borrow from each other—is 0% to 0.25% as of June 16, 2021, well above the 0.01% interest rate the Bank of America pays on a standard savings account.56 The banks don’t need your money; it’s just cheaper for them to borrow from you than it is to borrow from other banks."

Where you getting .1?

No. It isn't a tax because the wage-earner still controls it. He isn't paying it out to any government. It is still his.

I think there is a lower limit on the number of employees a business has before this would kick in so lots of mom & pops wouldn't fall under this.

I think it is to everyone's advantage to not have people reach retirement and be destitute. At that point they are a drag on society and the economy. But I don't think it is something that government should mandate.......which they aren't since people can still opt out of the program.

Retirement planning should hurt a little. That is when you are saving the right amount each payday.

Just a couple things to consider...

I believe this is being done to encourage people to save for retirement. You certainly won't be bound to contributing. Rather, you'll simply be enrolled automatically and have to make any changes you see necessary.

If you put 3% into a 401k, the impact to your paycheck with actually be about 2% due to a lower taxable income. If I remember correctly, for every $100 you put in, your check will go down about $65-$70.

Typically, employer have some sort of match which will increase your contribution amount. You're a fool if you're not at least contributing whatever your employer is willing to match.

However, as we've all seen here, fools are aplenty.

Well said Kre

Just another "saltine" from Boco's cracker barrel of knowledge.

Bush had a similar proposal plan and it did not pass and its too bad would have been a good thing.

They are probably trying to bolster the stock market with new money to stave off another recession like 2008 Busch tried the same thing "kind of "when he proposed privatising 1/3 of your social security [wich I think was a good thing ] just prior to 2008 . That massive influx of money would have delayed the 2008 recession at least a little while

Credit union.

Maybe. But I somehow doubt that the 'new money' would be a large enough factor to make more than a ripple in the market.

“We should trust Americans by giving them the option of investing part of their Social Security contributions in private accounts.”


"Having invested so much political capital in this issue, President Bush embarked on the first of what proved to be a long series of tours crammed with events at which he pitched his plan to the people."



"According to the Gallup organization, public disapproval of President Bush’s handling of Social Security rose by 16 points from 48 to 64 percent–between his State of the Union address and June."

People.

Privatized Social Security. That would be a great plan. One way to pull an open check book away from Congress.

Im not convinced there are that many folks that need to decide between gas or groceries. I do think there are a fair shair that may have to decide between cigarettes and groceries, or cable biils and groceries, or the latest IPhone and groceries...you get the idea. As others have mentioned, getting ahead takes some sacrifice, something that many arent willing to do anymore . Id rather have some of these folks be coaxed into saving for their retirement rather than me having to save for mine AND theirs.

Yes, a fool. There are many other investment options, yes, but none available to your average blue collar American that even come close to touching the historical rate of return of a tax advantaged 401k, and if it’s a ROTH 401k you can’t hold a candle to it with any investment other than perhaps real estate, which you have to be VERY good at and have a good deal of money to begin with to get into. For most Americans a 401k is the best investment vehicle

I would be interested in who is lobbying this bill. Almost bet it is hedge fund managers and the banking industry ,

White call it what you want but if it is "mandated" it is a tax in sheeps wool. SS match isn't a "tax" but it is looked at as such because it's mandated. Some businesses won't survive this Mandated NON-TAX
It's 10 or under to not be "FORCED " to pay 3% of a non-tax for the employer......