It is here. The gears are starting to turn and the Democrats are getting the plan into motion. It seems innocent now .. but it is only the first of many steps toward a government takeover of your retirement. Just like ObamaCare was significant first step toward government-run healthcare, this idea for automatic enrollment IRAs is just the beginning ... from The Hill:

The White House and congressional Democrats, with the backing of the AARP, will soon put forth a plan to automatically enroll new private-sector employees in investment retirement accounts (IRAs).

The measure will apply to new workers at firms that don't currently offer 401(k) retirement plans, according to AARP, the lobby group for seniors. Workers would have the choice of opting out of the accounts ... 


Like other employer-based retirement accounts, the opt-out accounts proposed by Democrats would have tax benefits. It's unclear whether they will be traditional tax-deferred accounts or Roth-style vehicles, in which account holders don't pay taxes on withdrawals. Iwry, a retirement savings expert, has preferred Roth accounts in the past ...

"It's another burden placed on business that's coming from Washington, keeping business owners from hiring and investing," said Bill Rys, the tax counsel for the National Federation of Independent Business. "They're being told, 'Here's how you run your business.' "

So what is the immediate impact of this? For one, it adds yet another burden on small businesses. Already trying to figure out how they are going to handle the new employer mandate under ObamaCare, this talk of automatic enrollment just adds to fuel to the fire. Mandating private companies, especially small companies, always comes at a price. It takes time, resources and money to implement and abide by these mandates. That money doesn't appear out of thin air; it is taken from money that would otherwise be used to pay employees, buy new equipment or hire new workers.

If Barack Obama and the Democrats were serious about helping small businesses, more government mandates is NOT the answer. Remember last week how I was telling you that businesses have had it with Obama? This is exactly why. They are uncertain as to his next move, his next mandate, his next tax. Bottom line is that employers do not want to hire or expand when they are uncertain about their future earnings, which are affected by taxes and mandates.