Raiding private pensions: it’s not just for Argentina anymore

Back in October 2008, Argentina nationalized ten bank-owned pension funds – worth over $26 billion in total – in an attempt to bail itself out of a financial crisis.

Now it’s Ireland’s turn: a tax, not a nationalization,
Irish Bombshell: Government Raids PRIVATE Pensions To Pay For Spending

The Irish government plans to institute a tax on private pensions to drive jobs growth, according to its jobs program strategy, delivered today.

Without the ability sell debt due to soaring interest rates, and with severe spending rules in place due to its EU-IMF bailout, Ireland has few ways of spending to stimulate the economy. Today’s jobs program includes specific tax increases, including the tax on pensions, aimed at keeping government jobs spending from adding to the national debt.

The tax on private pensions will be 0.6%, and last for four yearsaccording to the report.

But Argentina and Ireland are not alone: Business Insider lists Iceland, Switzerland, Finland, Belgium, the Slovak Republic, the Czech Republic, France, Poland, Austria, Slovenia, Portugal, Greece, Germany, South Korea, Spain, Italy, and Japan as likely candidates to follow their example. Investor’s Business Daily points out that

Britain under Labor Party Prime Minister Gordon Brown did something similar in 2008.

The Irish plan is to tax of 0.06% on 65,000 private pensions to fund a :jobs initiative” for four years.

And when that doesn’t work, what next?

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Related:
Here in the USA,
The Millionaire Retirees Next Door
Typical retired couples will collect $1 million or more in Social Security and Medicare. This is more than they paid in, and the cost will fall on today’s workers.

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