Ask the taxgirl: “Windfall tax” on Retirement

Taxpayer asks:
Is this true? Post this on taxgirl.com with an answer please.

Windfall Tax on Retirement Income

Adding a tax to your retirement is simply another way of saying to the American people, you’re so darn stupid that we’re going to keep doing this until we drain every cent from you. That’s what the Speaker of the House is saying. Read below……………

Nancy Pelosi wants a Windfall Tax on Retirement Income. In other words tax what you have made by investing toward your retirement. This woman is a nut case! You aren’t going to believe this.

Madam speaker Nancy Pelosi wants to put a Windfall Tax on all stock market profits (including Retirement fund, 401K and Mutual Funds! Alas, it is true – all to help the 12 Million Illegal Immigrants and other unemployed Minorities! (Actually closer to 20+ million).

This woman is frightening.
She quotes…’ We need to work toward the goal of equalizing income, (Carl Marx 101), in our country and at the same time limiting the amount the rich can invest.’ ( I am not rich, are you)

When asked how these new tax dollars would be spent, she replied:
‘We need to raise the standard of living of our poor, unemployed and minorities. For example, we have an estimated 12 million illegal immigrants in our country who need our help along with millions of unemployed minorities. Stock market windfall profits taxes could go a long way to guarantee these people the standard of living they would like to have as ‘Americans’.’ ;( Read that quote again and again and let it sink in. Lower your retirement, give it to others who have not worked as you have for it.

Send it on to your friends. I just did!! This lady is out of her mind=

Taxgirl says:

This time of year – with elections coming up – my inbox is chock full of emails claiming one thing or another about various Senators, presidential candidates, gas company conspiracies and the like.

I tend to ignore most of them because, quite frankly, most of them are crap.

Like this one.

But since I was asked about this one, I did check it out.

For the record, Nancy Pelosi has not proposed any such tax (nor has any other member of Congress). The windfall profits tax that she has endorsed involved the oil companies. There is nothing pending in Congress, nor being kicked around in the media (other than in this chain email) that references any such tax on retirement.

The quotes attributed to Pelosi aren’t true at all.

The first version of this email was initially circulated as a tax on stock market profits in 2006 and the facts were allegedly supported by two NY Times reporters, Walt Bogdanich and Gretchen Morgenson. Bogdanich and Morgenson are reporters with the Times but the piece that allegedly references Pelosi doesn’t mentioned her in that article (and the quotes never appear in any article). It is false. So, of course, the same story was reworked a second time as a tax on retirement monies, which began circulating via email in March 2008 – only again, not true.

Factcheck.org (one of several sources I checked) refers to this email as a “fraud” and a “malicious fabrication.”

You can always find out what bills your Congressional officials author and support by checking the Library of Congress database – rather than rely on chain emails.

If you’re not so inclined to check the database, I would at the least, recommend that you check snopes.com for more information about these chain emails before sending them on. Your friends will thank you for it.

digg_url = ‘http://digg.com/politics/Pelosi_Proposed_Retirement_Windfall_Tax_Email_a_Hoax';

Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.

Have a question? Ask the taxgirl!

Comments

  1. John Coffey

    What retirement? I just got my 401 K statements for mid year and they’re all down. Bumming!

  2. Chris

    Most of the e-mails of this sort are untrue if you check them out, at least in my experience.

  3. Melody

    I’ve received many of these e-mails in the past. When something hits my bull@&!# alarm as hard as this one did, I always check it out on snopes.com. Then I send an e-mail back to the person who sent it to me.

    I’ve cut down on a lot of these by doing this (at least people aren’t sending them to me, anyway).

  4. Pingback: More Phony Tax Emails… It Must Be Election Season!

  5. Chris

    No one has disputed her statement. Just because she hasn’t proposed a bill in Congress yet, doesn’t mean it isn’t on her agenda to do so. A good example is Democrat Jim McDermott from Washington proposing that the Treasury can no longer support giving tax breaks to 401K contributions; he hasn’t proposed changing the tax law through the Chief Tax Evader Charlie Rengal, but it could be coming.

    http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20081012/REG/310139971

    Here is an excerpt from the meeting related to retirement accounts: A plan by Teresa Ghilarducci, professor of economic-policy analysis at The New School for Social Research in New York, contains elements that are being considered. She testified last week before Mr. Miller’s Education and Labor Committee on her proposal. The article goes on: Under Ms. Ghilarducci’s plan, all workers would receive a $600 annual inflation-adjusted subsidy from the U.S. government but would be required to invest 5% of their pay into a guaranteed retirement account administered by the Social Security Administration. The money in turn would be invested in special government bonds that would pay 3% a year, adjusted for inflation.

    The current system of providing tax breaks on 401(k) contributions and earnings would be eliminated.

    “I want to stop the federal subsidy of 401(k)s,” Ms. Ghilarducci said in an interview. “401(k)s can continue to exist, but they won’t have the benefit of the subsidy of the tax break.”

    Under the current 401(k) system, investors are charged relatively high retail fees, Ms. Ghilarducci said.

    “I want to spend our nation’s dollar for retirement security better. Everybody would now be covered” if the plan were adopted, Ms. Ghilarducci said.

    This is Socialism/Marxism at its core. These elected idiots want to move your 401k money into the defunct social security trust fund and guarantee you a 3% return. Good luck meeting your retirement goals.

  6. navyvet48

    I wrote a piece on 401ks discussing the 401k garbage coming from the Dems and the woman from that Social Justice outlet> I think it is quite possible that the Dems are looking for new ways to tax people while talking out of the other side of their mouths saying we will cut taxes for the middle class! We must keep our eye on Congress and don’t let them get away discussions like this or even thinking about suggesting any bill that would do this. Knowledge is strength. Watch out though! SCIP is up for a vote again. The language of the bill will give Medicaid to illegal immigranst!

  7. rhino

    It was stated on the News a couple weeks ago that SNOPES.COM is a Mom and Pop website and it sometimes gets things wrong. I have personally seen it happen twice. Don’t rely solely on this website, but use it along with other websites before drawing a conclusion.

  8. Linda

    Chris, Last year, I e-mailed Profesor Ghilarducci, when I read what it is that she proposed. She even made statements to congress on this very subject and what her proposal was, which was for the government to take control of all 601 ks etc.

    She and I e-mailed back and forth a few times on this subject, From her blackberry, she tried to convince me that we would be better off if the government controls our retirement savings. I told her she is wrong, that the government screwed up Social Security by using the supposed next egg to fund everything under the sun, and put her in the situation we are now experiencing with SS. I then said, I would not want them to take what we have been saving and trying to build for year so they could sqaunder that too.

    Ther’s more to this, but there’s only so much room here.
    Man we are in sooooooooo much trouble.

  9. Pete

    The Windfall Retirement Tax statements attributed to Pelosi have probably never been made by her, at least not publicly. HOWEVER, they do accurately reflect what she and the rest of the current government (Republicans and Democrats alike) have as their agenda. Congress is currently trying to figure out what to do about the Inheritance Tax – effectively a windfall for your heirs at your retirement from living. That tax, like most of the rest of taxes today, is going to line the pockets of those that did not earn it.

  10. beth

    i just read that pelosi wants a tax on “unearned income’ to help w/healthcare costs. to the tune of 3.4 % or something like that. when asked if retirement savings came into that category she said all unearned income whatever category that falls in. who is the public to believe, this drives me insane. oh according to ‘gladsomeoneis’ than that makes me a repub.

  11. Mike H

    You did not do very good research, she did say some of these things in 2006 in a comment that was meant to get votes from unemployed, illegal and welfare grabbers. Plain fact she is stupid. She started out grousing about Bush’s tax policies that benefited only the rich and ended shooting herself in the foot.
    Truth is she is scary!
    True her comments were twisted- but the intent is there.
    See this link for details of her comments.
    http://www.snopes.com/politics/pelosi/windfall.asp

  12. Author
    Kelly

    Mike H, I did read that Snopes piece. You and I will have to disagree that it changes anything about my post. I think that Snopes piece clearly states that she had no intention of enacting a windfall tax on retirement accounts and that her 2006 comments were tied to subsidies for the oil industry. The Snopes piece says that the email “does not correspond to anything that she actually said or proposed” and a second version of the email included an “equally false claim that Rep. Pelosi’s non-existent windfall tax proposal…” would be expanded.

  13. Pingback: Ask the taxgirl: “Real Estate Tax” In Health Care Law? | taxgirl

Leave a Comment