Why is McCain saying that Obama will tax contributions to 401K?

[question everything]

Is this topic covered in one of those "fact checks" sites?

Thanks.

[drm604]

1. Because he's a lying SOB?

http://www.factcheck.org/askfactcheck/would_obama_tax_my_profits_if_i.html

Taxing IRAs and 529s: Contrary to the claim in this e-mail, raising tax rates on capital gains or dividends would not result in higher taxes on any investments held in Individual Retirement Accounts or in popular, tax-deferred "college funds" under section 529 of the Internal Revenue Code. The whole point of such tax-deferred plans is that dividends and capital gains are allowed to accumulate and compound tax-free, and neither Obama nor McCain proposes to change that. And as previously mentioned, any capital gains or dividend income from stocks, bonds or mutual funds owned outside of tax-deferred accounts would continue to be taxed at current rates except for couples making over $250,000, or singles making more than $200,000.

[question everything]

7. I don't think he was talking about earning while inside these accounts

but about contribution.

When I am looking at our pay stubs, our taxable income is being reduced by the amount withheld to pay for health insurance and to contribute to 401K.

We know that McCain is going to tax the health insurance premiums (instead of let everyone pay with pre-tax money), so now he is turning it back to say that Obama would tax the contribution?

[dem629]

2. Because he loves to lie.

[wishlist]

3. McCain wants to allow withdrawals at only 10% tax rate, Obama's at regular tax rates

Both Obama and McCain want to allow people to withdraw some of their IRA/401k money before current required age without penalty. Difference is that McCain wants the withdrawals which are subject to income tax to be only taxed at a maximum of 10% whereas Obama wants these early withdrawals to be subject to normal income tax rates. McCain's plan favors those in higher tax brackets and could cause huge premature unwise withdrawals since most people would have been in a higher than 10@ bracket when they contributed and the low tax rate for withdrawals would be a big incentive for many people to cash in their retirement accounts (whether they need to or not) and spend the money, leaving them with less savings for retirement.

[Virginia Dare]

4. Then you're not taxing contributions, you're taxing withdrawals....n/t

[JuniperLea]

5. Exactly

They will get us coming or going and it doesn't really matter.

But the way McCain presents it is balderdash.

[SoonerPride]

6. He is now lying about 90% of the time.

Seriously.

[prolesunited]

9. No kidding

everything that comes out his mouth these days is a lie. They've just resorted to a say anything campaign.

Shame he's ending his career on such a low note. He sold his soul and will have nothing to show for it.

[Princess Turandot]

8. McCain might be referring to a version of this ..

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x7667228

It has nothing to do with Obama.

[question everything]

10. Thank you. Yes, this explains it

This is the post

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=7667228&mesg_id=7667558


http://www.workforce.com/section/00/article/25/83/58.ph...

This has nothing to do with Obama. House Education and Labor Committee Chairman George Miller, D-California is totally against 401k/403b contributions being made on a pre-tax basis. He called an academic pension 'expert' to testify before his committee a few days ago named Teresa Ghilarducci whose claim to fame is a proposal creating a new retirement system for the US. She is quoted as saying that Miller is interested in aspects of her proposal. Republican blogs are now spinning this as some sort of done deal to 'take' peoples' private retirement funds.