Today, we’re going to talk about the democratic tax plan and how if you’re not careful, you could be in a real pickle. Stay tuned.
From Philadelphia, the home of the Liberty Bell, Financial Freedom Radio starts now. Here’s your host, Raymond Jewell.
Good morning everyone. Welcome to FinancialFreedomRadio.com. I want to thank you all for coming today, listening, and downloading. By the way, we’d like to ask you to share and like our shows. We build our base off of referrals. So the more, the merrier. Hopefully, this information is information that you like to hear. I love my saying, “The mind that opens to a new idea never goes back to its original size.” I say Albert Einstein says it and Steve says no.
For the record, Google says Einstein did. Well, Google said it’s unclear who said it.
I don’t believe a damn thing Google says.
Oh now will you stop with that? Look, I’ve had to bleep you in the past. I don’t want to keep bleeping you now.
Well before he bleeps me, today I’m going to tell you, it’s going to be wicked. I know it’s going to happen because we’re gonna get into some political stuff, but don’t go away, Steve. I want to ask you how your weekend was. Let’s create some dialogue here because I understand certain powers that be, that actually assist in producing this show want us to have dialogue.
Well, you’re referring to my son who does the transcription, then yes he finds the witty banter back and forth more entertaining. So he wants more of that. So yes, I had a good weekend. We all had a good weekend here in the Bailey house.
I didn’t want to expose him for being your son, but since you did it, we believe in nepotism, folks.
I’m proud of my son. He want to college for writing and he’s now doing transcription of the show. So it’s the leg up.
He’s a vital asset to our show.
He’s one-third of our business.
He says only three of us.
Well, I was talking about the podcast, the video, and then the blog post.
Right. Did you hear, I know you might have, but Biden keeps talking. Don’t go away because I need you here. Biden keeps talking about not raising taxes over people or to people that make under $400,000 a year. Did you know that’s not true?
I know you talked about it at the show before last.
Yeah, he’s going to tax your 401ks.
He’s not taxing the 401k, he’s eliminating the tax deferment part of the 401k and going to get the money on the upfront instead of on the back-end. If I read that right.
That’s a tax, Steve.
The thing was the 401k was always being packed. It was just being taxed when you withdrew it, not when you put it in.
I understand, but by taxing it on an annual basis, what’s going to occur is at the end of the year, you’re going to have a tax bill on the money you put into it. I’m going to go into this a little more, which means that employers are going to start-
Are you getting political?
Not yet. I’m skirting it. Just go ahead and do it. See what I put up with, folks? It ain’t easy.
We’ve had a lot of feedback about your political slant.
So I did an informal study and the people I talked to that happen to be clients that actually watch the show, they like it. They said that Financial Freedom Radio is Financial Freedom. Anything that encompasses that not just leap process and that kind of stuff. So I thought you’d find that interesting.
Yes I do, Ray.
That’s a short answer.
Can I go away now?
Yeah, if you must. So we’re going to talk about taxes. I don’t know if you’re aware of that. There’s a guy, I don’t know if you can see this or not. It seems a little fuzzy.
Yeah, you’re having Internet issues. Do you want to hold it closer to the camera? They can probably read it better. There you go.
Fitty Cent endorses Donald J. Trump for President. He was not a fan of Trump until he read the tax plan and that Biden was going to raise the taxes on everybody that makes $400,000 or more. That turned him off. This is a report that I got. Can you see that? Biden’s plan will kill 2 million jobs. This stuff’s all over the internet. So when this guy lies and says I’m not going to raise your taxes below 500 or 400 thousand dollars, that’s just not true. So I did some more digging. We went over a couple of weeks ago about the 401k and taxing that. So I went back and I looked at popular shows. One of the things I wanted to talk about was the democrats want you to feel they’re not going to raise your taxes. We talked about this, but a frequently overlooked part of the democratic presidential nominee Joe Biden’s platform to upend the traditional tax preference of retirement accounts like 401k plans. Some of this got blocked off, but it’s a change that this changes the industry. Experts warn could force some small companies to cut those benefits which means the little guy’s going to get shafted. The employers can’t afford them or won’t afford them. Biden has vowed to convert the current deductibility of traditional treatment contributions into matching refundable credits for 401k, IRAs, and others. That’s just the tip of the iceberg.
So they’re going to tax your plan. The proposal from the former vice president is intended to level the playing field of tax deferral in traditional retirement accounts with the intent of boosting savings among low-income earners. Industry experts caution that by reducing the benefits that higher earners receive, the Biden campaign may have increased the likelihood of business abandoning those retirement benefits altogether. As an entrepreneur, you work really hard to build your business and if somebody’s going to start monkeying around with what you’re offering as benefits to your employees, it’s better for them to walk away from it. 401k’s the only reason that they are in place as a matching because if the employer and top people want to match or want to get 401ks, they’ve got to provide it to everybody within certain parameters. Since they did away with pension plans, they’re offering the matching funds for 401k. So you have matching funds that are going to go away. This will definitely cause a major impact on investments because 401ks are invested by major investment houses. If you mess with them and they start getting dumped, there’s less money in the market. There’s going to be an attrition of money in the market and people will start pulling out.
It’s kind of like if you take these for the trees, isn’t it? It seems to me like it’s a very short-term vision. Yes, we’re only going to tax people over 400,000, but that’s got long-term repercussions downstream, right?
Yeah, you’re right because what occurs is when they do that, it’s like dropping that boulder. You’ve heard me say dropping a boulder in a pond. You get the initial wave, but then you’ve got the ripple effect that constantly keeps on. They have not thought this through. It’s a gimmick to try to get your votes and if you fall prey to it, you’re going to lose and it’s going to impact the economy. When the middle class, which is mainly supported by the current administration, when the middle class is living a great life, I’m gonna make your life better and then they make it worse. They tell them they’re living a great life and that’s not resonating with people. When you only make it advantageous for lower-income earners to save money because if you’ve got a person making 10 or paying 10 and they put away $100, they’re going to pay $10 in tax, and then they’re going to get the rebate of 26%.
So they’re going to actually make money, but they’re the only group that will and they’re a small group because 50 or 60 percent of the taxes are paid by the top 1% of the people in the country. So they’re paying the lions share. The lower people, not poor. The lower people are going to suck up the money and be fine, but the middle class is going to take it in the shorts. I’m keeping it clean here.
I don’t know if you are. That’s pretty right on the line.
If he wants to raise the minimum wage to $15 an hour, that’s going to cause employers to dump people out of their business and some of them may go out of business because they can’t. That’s an enormous increase in mandatory wage that people talk about. Quite frankly, the argument is most people are making above that now, then why address it. You want to make people that aren’t making a lot of money richer, make them go out and work.
I think that was political.
Anyway, the employers who make contributions to a 401k must offer the same benefit to their workers under Biden’s plan while continuing to contribute on behalf of their employees which is expensive particularly during a pandemic. I don’t know what the stats are about the employer going under. Somebody said it was a huge amount and they want to drive it down even more and treat the pandemic as a problem that they can keep control of people with, but that’s another story. Don’t hit the button.
I love that you’re scared of the button now.
I’m not scared of the button, just annoying. Some of the bosses traditionally have higher income earners, traditionally are higher-income earners. They may lack the incentive to offer those retirement accounts if their tax benefits get slashed. These are quoting people that are economists. When you mess up that bargain and it’s a bargain between the people that you put the money away tax-free or tax-deferred, you get a discount on your taxes because many people use it as a discount to lower their tax bill for the year knowing they’re going to have to pay taxes later. They get a tax credit. So when you start to tax the 401ks every year, you break your agreement with the people. When you break the agreement, you’ve now violated the trust of the citizens of this country because they believed that the government was going to stand behind them. If you’re worried about your 401k and your IRAs and worried about what’s going to happen, trust me. It’s kind of like the devil you know versus the devil you don’t know. We know what’s going on. We know our income’s better. You ask the question are you better off today than you were four years ago. Certainly, you’re not going to be better off after the election, if Biden gets in because, quite frankly, he will raise your taxes and screw up the economy. There are so many other things going on in his background that the media is ignoring. You are going to be very upset if you go this path, all about the Hunter Biden scandals and everything else, but I’m not going to get into that.
So we’re going to wrap this up. We’ll talk about it again next week. I’ve got more information to share with you. So I want to thank you all for coming, downloading, and please tell your friends. FinancialFreedomRadio.com. Go in there and put your email address in and we’ll send you an email whenever these show up or go to Youtube.com/FinancialFreedomRadio and watch the show and download it. Like, share, and subscribe and always ring the bell. So have a great week again. We’ll see you back here next week. FinancialFreedomRadio.com. Take care. God bless.
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