"Knowledge will forever govern ignorance

 and a people who mean to be their own governors

 must arm themselves with the power which knowledge gives."

Sunday, January 29, 2006

401(k) Plans To Be Taxed To Pay For Bloated NJ Public Employee Benefits?

We’ve written on this topic so many times, it’s nice to see others in the blogosphere bringing this travesty to the attention of a wider audience. Bulldog Pundit at ABP writes:
Budget advisors for new NJ Governor Jon Corzine (sworn in last week) have raised the possibility of taxing private 401(k) retirement accounts to help close a $6 billion budget gap.

Nearly 20% of that amount is needed simply to keep state pensions solvent. As many of you know I've harped on the destructive policies of state defined benefit pension plans, and now the chickens, as they say, are coming home to roost. I wonder how NJ residents will feel having their private retirement accounts reduced simply to help pay for those of public employees?

Alexander K. McClure at PoliPundit weighs in on the topic with - The Path to a Republican Governor in NJ in 2010.

Just a few of our previous posts on the subject:
The High Cost of Public Employees
Public Employees Lecture New Jersey Taxpayers
Rutgers Report: New Jersey's Economy Lags Nation
The More They Waste, The More They Make
Codey: State Pensions, Benefits "Strangling" New Jersey Taxpayers



5 Comments:

At 6:00 PM, Anonymous njcons said...

Do they want to tax contributions or returns?

 
At 8:45 PM, Blogger njgalaxie73 said...

As brazen as the Trenton bureaucrats are getting nowadays, I would think a little of column A and a little of column B!

 
At 9:59 PM, Blogger Enlighten said...

Codey was looking at proposals to tax contributions to 401(k) retirement plans, we would assume Corzine’s ‘advisors’ have the same idea in mind.

 
At 8:19 AM, Anonymous njcons said...

The next question is would it be legal. 401-K plans are requlated by the IRS. Anything that might lower participation in a plan, and removing the pretax contribution would do this, would have a serious impact on a business ability to be in compliance.

Any business that has a 401-K must supply the IRS with a form 5500 yearly. This form shows all of the employees that are elgible for the plan, whether they are highly compenstated or not and how much they contribute. If a company has too many highly compensated plans and not enough of the reqular employess the plan is called top-heavy and the business is out of compliance and the IRS may tax all contributions of participants if corrective action is not taken.

While lower paid employees have a chance to participate in a 401K plan it is in many case difficult or impossible for them to do so because of economic circumstances. Taking away one of the selling point, namely tax free contributions makes it even less attractive to them. The unintended consequence of taxing contributions and driving out the lower paid worker is that many small to mid-size companies will be forced to drop their 401K plan because it will be impossible to remain in compliance.

Once again the Democrats will hurt the very people they say that they stand for.

 
At 5:48 PM, Blogger njgalaxie73 said...

Turning New Jersey into a "beautiful liberal utopia" is an expensive job as we well know it would be.

 

Post a Comment

<< Home


 Contact Us

  • Email Us
  • Blog Roll Us!

    Search

    Syndication

  • Atom Feed
  • Bloglines
  • Feedburner
  • Feedster
  • Add to Google
  • Add to My MSN
  • Add to My Yahoo
  • News Is Free

    Recent Posts

  • Stop New Jersey’s Death Spiral
  • Carnival of the New Jersey Bloggers # 37
  • Johnny-Come-Lately To Kos Club
  • Bob Is Back
  • The McGreevey, D'Amiano, Halper Saga
  • Wake Up New Jersey Republicans
  • Aaron Brown Makes The Case
  • European Union Supports New Jersey
  • Kerry Calls For Alito Filibuster
  • Report: New Jersey Is A Financial Basket Case

    Archives

  • November 2004
  • December 2004
  • January 2005
  • February 2005
  • March 2005
  • April 2005
  • May 2005
  • June 2005
  • July 2005
  • August 2005
  • September 2005
  • October 2005
  • November 2005
  • December 2005
  • January 2006
  • February 2006
  • March 2006
  • April 2006
  • May 2006
  • June 2006
  • July 2006
  • August 2006
  • September 2006
  • October 2006
  • November 2006
  • December 2006
  • January 2007
  • February 2007
  • March 2007
  • April 2007
  • May 2007
  • June 2007
  • August 2007
  • September 2007
  • October 2007
  • November 2007
  • December 2007
  • January 2008
  • February 2008
  • April 2008
  • November 2008
  • January 2009
  • August 2009
  • September 2009
  • February 2012

    Online Journals

  • National Review

  • Opinion Journal

  • Real Clear Politics

  • Weekly Standard


  • Blog Roll

  • A Blog For All
  • Althouse
  • Ankle Biting Pundits
  • Barista of Bloomfield Avenue
  • Betsy's Page
  • Blue Crab Boulevard
  • Blogs For Condi
  • Bob the Corgi
  • Brainster's Blog
  • BuzzMachine
  • Captain's Quarter's
  • Cinnaman
  • Coalition of the Swilling
  • CWA-NJ
  • Dino's Forum
  • Daily Mail
  • Don Surber
  • DynamoBuzz
  • eCache
  • Exit 4
  • Fausta's Blog
  • GOP Bloggers
  • Instapundit
  • Joe's Journal
  • Kate Spot
  • Kausfiles.com
  • Little Green Footballs
  • Michelle Malkin
  • More Mnmouth Musings
  • Parkway Rest Stop
  • Patrick Ruffini
  • Polipundit
  • Power Line
  • Right Wing News
  • Roger L. Simon
  • The Blue State Conservatives
  • Riehl World View
  • Red Jersey
  • Right, Wing-Nut!
  • Sid in the City
  • Tiger Hawk
  • The Truth Laid Bear
  • Tim Blair
  • Wizbang


  • Sid in the City



    Majority Accountability Project

    MAP

    New Jersey Blogs

    Enlighten-Carnival-small

  • 11th and Washington


  • A Blog For All
  • A Planet Where Apes Evolved From Man?!?
  • Armies of Liberation
  • Atlantic Highland Muse
  • Attack of the 15.24 Mete


  • Barista of Bloomfield Avenue
  • BeLow Me
  • Big Windbag
  • Blanton's and Ashton's
  • Blue State Conservatives
  • Burning Feathers
  • BuzzMachine


  • Clifton Blogs
  • Coalition of the Swilling
  • Cobweb Studios
  • CoffeeGrounds
  • Constitutional Conservative
  • Confessions of a Jersey Goddess
  • Corzine Watch
  • Crazy Jackie
  • Cresting Acrocorinthus
  • Cripes, Suzette!


  • Daniella's Misadventures
  • Did I Say That Out Loud
  • Dojo Mojo
  • Dossy's Blog
  • Down the Shore
  • DynamoBuzz


  • eCache
  • Enlighten-NewJersey
  • Eye On Hoboken
  • Exit 4
  • Exit Zero
  • Extreme-Psychosis


  • Fausta's Blog
  • Fausti's Book Quest
  • Fractals of Change
  • Frenchtown NJ Blog


  • GiggleChick
  • Gregg Gethard's Amazing Personal Journey
  • goethe re scape


  • Hoboken Rock City


  • IamBillPower
  • If this is paradise, I wish I had a lawn-mower
  • Imaginary Therapy
  • Inadmissible Evidence
  • INCITE


  • Jersey Beat
  • Jersey Perspective
  • Jersey Side
  • Jersey Style
  • Jersey Writers
  • Joe's Journal


  • Karl's Corner
  • Kate Spot


  • Laughing At The Pieces
  • Likelihood of Confusion
  • Liss Is More


  • Mamacita
  • Mary's Lame Attempt at Fame
  • Media in Trouble
  • Michael Carroll
  • Mister Snitch!
  • MucknMire
  • My Life as a Rabid Blog
  • My New Jersey


  • New Jersey Eminent Domain Law
  • NJ Conservative
  • NJ Fiscal Folly
  • New Jersey For Change
  • New Jersey Weblogs
  • NJ Spoken Word
  • Northeast Corridor


  • Parkway Rest Stop
  • Philly2Hoboken.com
  • Poetic Leanings
  • Poor Impulse Control
  • Professor Kim's News Notes
  • Property Tax NJ


  • Rain Angel
  • Riehl World View


  • Shamrocketship
  • Shipwrecks
  • SloppyDawg
  • Sluggo Needs a Nap
  • SmadaNeK
  • Static Silence


  • Tami,The One True
  • Tammany on the Hudson
  • Tequila Shots For The Soul
  • The Art of Getting By
  • The Center of New Jersey Life
  • The Daily Fry
  • The Duc Pond
  • The Jersey Shore Real Estate Bubble
  • The Joy of Soup
  • The Mark(ings) of Zorro
  • The New Wisdom
  • The Nightfly
  • The Opinion Mill
  • The Pink Panther
  • The Political Dogs
  • The Rix Mix
  • This Full House
  • Tiger Hawk
  • Tomato Nation
  • Toxiclabrat
  • Twisty


  • Unbillable Hours
  • Usdin.Net


  • Where Is The Remote
  • Wine Goddess


  • Xpatriated Texan


  • Links

  • NJ Governor
  • NJ Legislature
  • GOP GOTV
  • Bob Menendez Information


  • Blog Rings

  • Blog Explosion
  • Blog Directory
  • Blogsnow
  • Blogwise
  • Blogstreet
  • Blogshares
  • Blogarama
  • Blog Digger
  • Daypop
  • Globe of Blogs
  • Blog Search Engine


  • Ecosystem Status


  • Who Links Here






  •