Why does US govt keep giving companies ways to cheat us?

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HoneyNut

HoneyNut

Senior Member
I know I am many many months late to understand this subject (assuming I do, which maybe not). The big corporation I work for cheated its employees out of our 401k match (so basically chopped 3% of our pay), not because the company was going to lose money, but just because it wasn't going to meet the planned amount of profit for the year. I have been so angry about this for months, but now I find out that the CARES act also did this:
"All employers (including government entities) may defer the deposit and payment of the employer's share of Social Security tax."

So not only are profitable corporations being allowed to cheat employees out of 401k matches, but they also are cheating everyone out of funding social security in a timely way.

If my 401k match had been paid, I would have been getting good prices in the stock market, and although I don't know how the social security funds are invested, I would think they would have been able to be invest at more advantageous prices too.

I don't have any trouble with giving breaks to companies or people that are suffering from the pandemic, but I know my division at work got extra contracts because of the pandemic and we exceeded our division's financial goals.

So while our politicians whine about giving tax credit checks to us because it is such a huge cost and they keep wanting to limit who qualifies, they on the other hand apparently have no problem with giving huge breaks to companies without requiring ANY level of need.

Who wants to bet that in a few months the politicians will be saying we need to reduce social security payments/get rid of SS because "somehow" the program isn't bringing in enough funds. And they will say it is all the fault of old people for living too long!
 

That's what happens when the lobbyists are invited in to "help" write the laws. We're in the wrong business, we are. :cautious:
 
This is a great video that I suggest you watch, Honey.

It brings to light the realities that not only America faces, but the world faces.

The rich control the world, not our governing parties.

 

HoneyNut said:
"All employers (including government entities) may defer the deposit and payment of the employer's share of Social Security tax."
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There was much hubbub about this when the CARES act was passed. Most corporations quite publicly declined to take advantage of this deferral.

Your company's 401K match details are undoubtedly included in the fine print of their offer.

I once worked for a California division of a Canadian company. A fair sized bonus was tied to the (privately owned) company's profitability. The owner skimmed so much money off the top, and had the most convoluted accounting system imaginable to overbill various divisions, that the company's bottom line was greatly affected.

When I was told that I wasn't going to get my bonus because the company hadn't been profitable that previous year, I screamed bloody murder. Got my bonus and quit shortly thereafter.

The owner was a slime ball. Peter Nygard. Now in jail for sex trafficking.
 
The politicians Always Have, and Always Will bow to the wishes of their biggest campaign contributors. The ONLY time they pay attention to the bulk of the people is during the months leading up their elections.

Insofar as SS is concerned, I have little doubt that it will someday become just another welfare program for those living in or near poverty....possibly as soon as 2030...if Congress doesn't act soon to revamp this program, and it's funding. Anyone who is working today would be well advised to be setting a percentage of their incomes aside in some investments....401k, mutual funds, etc., if they expect to have a decent retirement.
 
Don M. said:
The politicians Always Have, and Always Will bow to the wishes of their biggest campaign contributors. The ONLY time they pay attention to the bulk of the people is during the months leading up their elections.

Insofar as SS is concerned, I have little doubt that it will someday become just another welfare program for those living in or near poverty....possibly as soon as 2030...if Congress doesn't act soon to revamp this program, and it's funding. Anyone who is working today would be well advised to be setting a percentage of their incomes aside in some investments....401k, mutual funds, etc., if they expect to have a decent retirement.
Click to expand...
Isn't that the truth!
 
HoneyNut said:
I know I am many many months late to understand this subject (assuming I do, which maybe not). The big corporation I work for cheated its employees out of our 401k match (so basically chopped 3% of our pay), not because the company was going to lose money, but just because it wasn't going to meet the planned amount of profit for the year. I have been so angry about this for months, but now I find out that the CARES act also did this:
"All employers (including government entities) may defer the deposit and payment of the employer's share of Social Security tax."

So not only are profitable corporations being allowed to cheat employees out of 401k matches, but they also are cheating everyone out of funding social security in a timely way.

If my 401k match had been paid, I would have been getting good prices in the stock market, and although I don't know how the social security funds are invested, I would think they would have been able to be invest at more advantageous prices too.

I don't have any trouble with giving breaks to companies or people that are suffering from the pandemic, but I know my division at work got extra contracts because of the pandemic and we exceeded our division's financial goals.

So while our politicians whine about giving tax credit checks to us because it is such a huge cost and they keep wanting to limit who qualifies, they on the other hand apparently have no problem with giving huge breaks to companies without requiring ANY level of need.

Who wants to bet that in a few months the politicians will be saying we need to reduce social security payments/get rid of SS because "somehow" the program isn't bringing in enough funds. And they will say it is all the fault of old people for living too long!
Click to expand...

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Who wants to bet that in a few months the politicians will be saying we need to reduce social security payments/get rid of SS because "somehow" the program isn't bringing in enough funds. And they will say it is all the fault of old people for living too long!

I would take that bet as I have heard that many times and it has not happened.
 
As was pointed out by @StarSong the 401K matching program is whatever the corporation wants it to be. I've never worked for a company with a matching program that's dependent on profitability, but then again companies in the silicon valley are in stiff competition with each other to provide the best benefits. I have worked for companies that tie bonuses to profitability or to revenue for companies that are still not profitable.
 
oldmontana said:
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Who wants to bet that in a few months the politicians will be saying we need to reduce social security payments/get rid of SS because "somehow" the program isn't bringing in enough funds. And they will say it is all the fault of old people for living too long!

I would take that bet as I have heard that many times and it has not happened.
Click to expand...
I would have guessed this would happen if the elections had gone a different way. Democrats are not interested in eliminating or reducing SS.
 
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