Yes, I Still Blog On Business (Links for 060105)

Today’s business news worth blogging:

• One word–shredders: USA Today reports that a little-noted feature of the same law that enables you to get free credit reports once every twelve months kicks in today:
  

  Starting Wednesday, employers must destroy personal information about their employees before they throw it out if they got the information from a credit report.

  That means “shredding or burning” paper documents or “smashing or wiping” computer disks.

  All employers — even if they have only one worker — are covered by the new regulations, which are part of the Fair and Accurate Credit Transactions Act passed in December 2003.

  Even individuals who employ a nanny or a yardman, for instance, and who have run a credit check must pulverize information before they throw it out. Employers could face state and federal fines or class-action lawsuits by employees.

• Matchless muddleheadedness: Laura D’Andrea Tyson, in Business Weak, (link does NOT require registration or subscription, for now) thinks the government should match IRAs like companies match employee 401(k) contributions at a level as high as 50%. Did I say that Tyson was chief Clinton Administration economist during its first two fairly flat years? Zheesh, this is just another weak idea from a group that doesn’t believe that people and companies react to economic signals. Many companies with low matches in their 401(k) plans would consider abandoning them, especially since the contribution limits on IRAs have gone up to levels above the typical employee’s annual 401(k) contribution. Also, many taxpayers would figure out that they could open up an IRA, collect the match from Uncle Sam, cash in the IRA, pay the taxes and penaltes, and still come out ahead.Exactly how does that help the retirement savings problem?
• The Tiger Tax? USA Today evaluates the idea of making everyone pay Social Security tax on all of their earned income (vs. the current $90,000 limit) with no change in the benefit structure, and asks “Can Tiger Woods Save Social Security?”Sure. Just like the 1993 tax change that applied the 2.9% Medicare tax to all earned income (1.45% employee, 1.45% employer, or 2.9% if self-employed) saved that program.

  What, you mean it didn’t?