A Different Perspective

Could government plans be seen as a Venus fly trap? The fly is attracted inside by the illusion of a free meal, then “WHAM!” the “doors” close. The fly becomes the meal. Is that a stretch? You can weigh the facts and decide for yourself. 

Totally missed, glossed over, or simply ignored by promoters and participants, is the very real fact that once money is put into a government plan it is effectively locked up. It can never come out, to anyone, at any time, without paying full income taxes at the appropriate full “bracket” (not the lower capital gains tax rate). In addition, if money is removed outside the government mandated rules it is also substantially penalized by as much as 50%. Many states tack on their own penalties as well. These are very effective locks.

Economic Fact: Locks on your money = loss of use of your money.

Through the use of penalties, it seems the promoters of government plans are saying to us: “We want to gain and keep control of your money. So, we will tax you, up to the highest bracket, and penalize you if you take your money out of our control.” (We should recognize that there is no legitimate economic reason for a penalty other than governmental and corporate greed.)

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