Obama Administration Come Out with Savings Plan

Obama Administration comes out with Saving Plan

The Obama Administration has come out with a way to get Middle-America to save. The Administration has again missed the mark on what the Nation needs.

The Obama Administration contends that millions of Americans have not be able to put away enough money for retirement and therefore the government needs to make it easier for them to do so.

One part of the plan is to allow medium-size and small employers to automatically enroll their employees into a retirement plan. The administration plans to push away the red tape that currently prevents these employers from joining.

The plan also would include having the IRS issue United States Saving Bonds to citizens as tax returns if the citizen request to have their refund sent to them in that form.

The administration intends to allow workers to convert unused vacations and sick days into money into their 401k plans as contributions.

Congress introduction a bill that would force employers to enroll their workers into an IRA; the employee would be allowed to opt out of.

Other proposals would expand the current savings credit, tax credit for middle to low income workers who save through 401K or IRAs.

The plans would cost the government approximately $59.6 billion dollars over the next ten years.

The plans in themselves are all good ideas for encouraging the country to save money however most of these plans require that you are employed. The plans work on the very idea that you are living comfortable enough to put money away.  The average American lives pay check to pay check with no room for extras.

The plans also don’t account for how the government gave us IRAs and 401Ks that were in the beginning suppose to be tax free. The IRA and the 401K quickly became the governments’ playing field as it realized it wasn’t getting more than its fair share. They were originally designed to encourage us to save money. The IRA and 401K quickly become less of a vehicle for saving money when you don’t see secured employment in your future.

Money is an issue for all. Saving money is a top priority for every American however you cannot save money if you are not employed and it becomes very frustrating to see your job go overseas when your company finds cheaper labor.

The United States has consistently allowed American Companies to send its labor over to other Countries. These countries don’t require clear air rules and allow children to work in factories. The United States pollutes countries with our demand for product that we will not allow to be made here due to the expense of keeping the environment clean.

Yet our country is telling out we need to save for our retirement. How in the world do you save for your retirement when you don’t have a job? The mortgage crisis goes beyond foreclosure.

The Obama Administration needs to look at the cause and stop trying to fix the effect. You need to fix the cause of a problem before you can deal with the effects.