House GOP tax leader threatens to break Trump's promise not to change 401(k) rules

[DonViejo]

Source: The Washington Post




By Damian Paletta October 25 at 9:57 AM

House Ways and Means Committee Chairman Kevin Brady on Wednesday suggested a tax bill he is preparing to introduce could force changes to 401(k) plans and other retirement accounts, potentially bucking a promise from President Trump that those accounts would be left alone.

Brady, speaking at a breakfast hosted by the Christian Science Monitor, said “we think in tax reform we can create incentives for people to save more and save sooner.”

He said he was “working very closely with the president,” but he also said many people who have tax-incentivized retirement accounts contribute $200 per month or less, a level he thought was too low.

“We think we can do better,” he said. He added “we are continuing discussions with the president, all focused on saving more and saving sooner.”

Read more: https://www.washingtonpost.com/news/business/wp/2017/10/25/house-gop-tax-leader-threatens-to-break-trumps-promise-not-to-change-401k-rules

[efhmc]

1. I'll make this easier for 45. You will know what decision is right by

what works best and makes the most money for financial institutions.

[PearliePoo2]

2. Doesn't matter what he said, he doesn't have a clue about ANYTHING.

The moron will happily sign anything that's put in front of him and call it a "WIN".
Then he'll strut around like a peacock and brag about it. Pathetic..

[FBaggins]

3. I'm not sure how the two messages make sense.

I think this started when a rumor went around that some senators were considering lowering the annual 401(k) limit to just $2,400/year... with some sources wondering whether that was really 401(k) products or IRAs (etc.) or both. Then Trump said that it wouldn't happen...

... now we have a House member saying that they're still considering changes that would increase earlier savings.

I can't think of something that would increase savings, but would limit deductibility.

[Thor_MN]

4. They wanted to limit amounts to increase taxes now.

They don't want the middle class to be able to defer taxes until later, that would decrease the amount collected now. They want to raise as much money (now!!) from the middle class, so they can lower the the amount collected from the 1%.

Deferring taxes until retirement doesn't help the GOP at all in their quest to give their investors a payback now.