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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsRepublicans Consider Sharp Cut in 401(k) Contribution Limits
By JIM TANKERSLEY OCT. 20, 2017
WASHINGTON House Republicans are considering a plan to sharply reduce the amount of income American workers can save in tax-deferred retirement accounts as part of a broad effort to rewrite the tax code, according to lobbyists, tax consultants and congressional Democrats.
It is unclear if Republicans will ultimately include a cap on contributions in the tax bill that they are expected to release in the coming weeks. Such a move would almost certainly prompt a vocal backlash from middle-class workers who save heavily in such retirement accounts and from the asset management industry.
The proposals under discussion would potentially cap the annual amount workers can set aside to as low as $2,400 for 401(k) accounts, several lobbyists and consultants said on Friday. Workers may currently put up to $18,000 a year in 401(k) accounts without paying taxes upfront on that money; that figure rises to $24,000 for workers over 50. When workers retire and begin to draw income from those accounts, they pay taxes on the benefits.
Rumors have circulated for months that negotiators were debating including a cap as a way to help offset the revenue loss from a reduction in business tax rates that Republicans have put at the center of their plan. Reducing contribution limits would be, in effect, an accounting maneuver that would create space for tax cuts by collecting tax revenue now instead of in the future.
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https://www.nytimes.com/2017/10/20/us/politics/republicans-tax-401-k.html?emc=edit_th_20171021&nl=todaysheadlines&nlid=57435284&_r=0
Madam45for2923
(7,178 posts)Wounded Bear
(58,654 posts)bluecollar2
(3,622 posts)Since the middle class are getting a tax cut they'll have more money to save so they won't need retirement savings accounts.
Is the sarcasm thingy really necessary?
brooklynite
(94,552 posts)Demsrule86
(68,565 posts)and fuck anyone who helped in any elect these monsters. Everything the middle class has is going to be gone...poor and middle class voters will pay more so succubus creatures like Trump and Romney can pay nothing.
Voltaire2
(13,033 posts)So a theory that nobody exceeds 2500 is nonsense.
roamer65
(36,745 posts)They are playing around with the next Great Depression on this one.
Ilsa
(61,695 posts)And of course, it is possible that if they privatize what is left of our SSI, they'll save the market for the 1%.
rickford66
(5,523 posts)Aristus
(66,351 posts)"It's your money; you should be able to do what you want to with it" - ?
roamer65
(36,745 posts)Aristus
(66,351 posts)DK504
(3,847 posts)all over the country to control the masses. The sad part is most people in this country have no clue what Hooverville's were.
Yupster
(14,308 posts)Can't think of anyone who would support this.
Maybe someone arguing only the top people can afford it so it's a tax cut for the rich?
I can't see Republicans going for it. They'd get murdered by their supporters.
b