[HOT] – Trump Promises ‘No Change to Your 401(k)’ as Congress Considers a Contribution Cap

WASHINGTON – President Trump Said Early Monday that his proposed tax plan would result in no change in the tax-deferred retirement plans of Americans, bucking reports that Republicans are weighing a proposal that would drastically reduce the income that workers can save in these popular programs.

Mr. Trump's judgment of the proposal is the first of what many Republicans fear in private could be a presidential model that disrupts their efforts to pass a radical reform of the tax code. In that document, Mr. Trump seemed to exclude a politically difficult idea that, if passed, would have provided income to help pay the tax plan. The podcast that gives meaning to the most delirious part of the 2016 campaign.

Republicans' ability to win a tax package is based on their ability to survive a complex set of legislative restrictions in the Senate. Republicans are trying to drastically reduce corporate tax rates, and also reduce personal tax rates, by using a legislative path that allows them to bypass a democratic filibuster and pass a bill with a simple majority of the Senate. To do this, they will have to make difficult political choices, eliminate some popular tax breaks or resort to certain budgeting tricks to compensate for revenue losses from rate cuts.

Trump's tweet concerned one of those accounting maneuvers, which would have allowed Republicans to effectively borrow tax revenues in the future to offset some of the rate cuts today. ; hui. Reducing contribution limits 401 (k) would require retirement savers to pay more taxes today because they withdraw money, but less in the future, when they started withdrawing their pension funds tax-free.

The Republicans had not decided to include a reduced cap on contributions in their final version of the tax bill even before Mr. Trump's tweet.

Details of the Republicans' tax bill were closely held, and they would not comment Friday on possible changes to 401 (k) policies. It was not clear from Mr. Trump's Twitter message on Monday that he meant that he would not support a bill including changes to the 401 (k) limits or that he knew that the Republican bill did not include such changes. Several sources said last week that such changes were under consideration as House Republicans were preparing to issue a tax bill in the coming weeks.

Democrats and other critics of Mr. Trump's tax plan, despite the White House and Republican promises. "Tax cuts for businesses and wealthier Americans should not be paid by raising taxes for middle-class Americans saving for retirement," wrote a group of Democratic senators, led by the senator Sherrod Brown from Ohio in September.

Republicans are discussing proposals that could cap workers' contributions at $ 2,400 per year for 401 (k) retirement accounts, lobbyists and consultants said. Currently, workers can set aside $ 18,000 a year in tax-deferred plans; workers over the age of 50 can save up to $ 24,000

Advocacy groups have emerged in Washington to oppose any proposed changes to these boundaries. One of these groups, the Save the Savings Coalition, said in a statement Monday that he was "delighted to see the president's statement today, although we will continue to fight for lawmakers to act properly. by preserving and extending our retirement system as tax reform runs through Congress. "

Let's Block Advertisements! (Why?)

Thanks for reading Trump Promises ‘No Change to Your 401(k)’ as Congress Considers a Contribution Cap, don’t forget to share this hot news with your friends and family.

>>>>> Source link

Leave a reply "[HOT] – Trump Promises ‘No Change to Your 401(k)’ as Congress Considers a Contribution Cap"

Author: 
    author

    Top