NC SENATE CANDIDATE PROPOSES MAINSTREET SHOULD BE ALLOWED TO BAIL OUT OF 401K PLANS WITH NO 10% TAX PENALTY!!

Raleigh NC October 5th 12:30pm

Jan MacKay is not running for Congress. Jan is running for state senate in North Carolina. As such, even if elected, she cannot introduce a bill into Congress. However, Jan is a citizen - the highest office in the land - and as such cannot sit idly by and watch the travesty of raiding the US Treasury to bail out Wall Street without getting at least something for Main Street. Here is what she wants, here is what she proposes, and here is the actions she proposes for a grassroots effort. Minutes ago, she wrote this letter to other NC candidates from the Libertarian Party. They have not discussed or endorsed this grassroots effort yet. As of this time, she stands alone and takes all heat from naysayers.

LPNC Candidates,


I propose that we contact Congress and the President and demand the 10% tax penalty on early withdrawal from 401k and IRA Rollover plans be lifted immediately.


For years, the government was telling us that Social Security is in trouble, so everyone needs to build a retirement nest egg by investing in a 401k plan. In order for people to get on a faster track, they can take a prudent or risky approach. Any time people gamble with their 401k, they can lose. In the last few weeks we have seen people lose a lot, because they did not understand how to shift their funds to less risk. Shame on them. We have also seen extremely low gains unless risk is taken.

If you lose your job, and can't quickly find another, you may be forced to go on food stamps which you won't qualify for if you have a 401k  or IRA rollover with more than $2000 in it, or you withdraw money from your 401k and get hit with a whopping 10% penalty in addition to the already high income taxes you will pay. If you keep your money in the 401k, which often has money market funds you can gamble on, you are likely to take a hit in an economic slump.

Keep in mind that this is an additional tax as penalty for you taking control of your own situation by withdrawing the funds you earned when you desperately need them.

The bailout plan put 110 BILLION, or more, worth of pork spending into the plan in order to entice reluctant congressional reps to agree to the bailout.

I think help for main street should begin with eliminating this 10% tax penalty. It's our money. We should be able to take control of it.

I have already proposed this in writing to my “current” congressional reps and the “current” President.

I understand there are LPNC and LP members who are investors who are well-off and may never be in a situation of needing to get to their own money, and do not want to see a run on the 401k and IRA rollover withdrawals. However, I believe libertarian values would say that people should be able to get to their own money, and this 10% penalty should never have been imposed to begin with. It is not just an encouragement to keep feeding the stock market and money markets - it is a severe penalty, and it is wrong.

Let's have a serious discussion. If LPNC agrees that this idea is worthy of libertarian values, let's take the next steps in establishing a grassroots movement and get national LP and Ron Paul fans on board.

Jan MacKay
NC Senate Candidate District 15

ELIMINATE THE SO-CALLED “SIN” TAXES

This is an idea that came straight from medieval times. People were told that their sins would be forgiven if they paid a pentance. Nowadays, you find the carry over of SIN TAXES justified as follows:

If we tax beer, wine, whiskey, and alcoholic beverages, and if we tax cigarettes and tobacco products, those folks are sinners anyhow, so they must pay a sumpuary tax for their indulgences.

That is medieval moral baloney!

Proponents of sumptuary taxes say this reduces such “sins”, when all it really does is create an additional economic burden on some to the relief of others. As such it is legalized thievery by a hypocritical (immoral) majority. How can such thievery be moral? The answer is that it is NOT.

The only thing this is, is an exchange of wealth program, so that those who do enjoy an alcoholic beverage or a cigarette will pay more taxes than those who do not. This is unequal taxation, at it’ s very core, and it is very wrong!

The only “SIN” is this stealing of money through taxation.

END the SIN TAXES on alcohol and tobacco. Those morality folks who think they are without sin, because they do not smoke or drink, are going to have to pay your own way!!