Monday, December 8, 2008

The Debts Of The Spenders: Pension Funds Beg Congress To Suspend Billions

In contributions. US pension contribution laws require corporate America to contribute significantly to employee retirement funds. Unfortunately, these contributions amount to a fiscal burden that is too heavy for many to bear.

The companies are de facto shifting the burden of retirement and healthcare costs onto the balance sheet of first the state and then federal governments.

State governments will have to contend w/lost business tax revenues, lost tax credits offered to these businesses, Medicaid contributions. These drawbacks are IN ADDITION to the plunging property tax revenues that local governments traditionally base the bulk of their budgets on.

The Federal government will have to contend w/unemployment benefits costs, food stamp costs, Medicaid contributions, lost income tax revenues, and possibly pension benefit guarantee costs (through the Pension Benefit Guaranty Corporation or PBGC that extends coverage to defined benefit plans) at the very least.


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