GOP Still Considering Digging Into Retirement Savings To Pay For Tax Cut
House Ways and Means Committee Chairman Kevin Brady said lawmakers are still considering modifying the tax structure of retirement savings accounts days after President Donald Trump publicly ruled out the possibility.
Brady indicated many aspects of the GOP tax overhaul remain in flux, less than a week before the bill’s scheduled Nov. 1 release. When asked about Trump’s public vow to maintain the existing tax break on money placed in 401K accounts, Brady said changes to the retirement savings program were still being considered.
“We think in tax reform we can create incentives for Americans to save more and save sooner,” Brady told reporters at a breakfast hosted by The Christian Science Monitor. “We are exploring a number of ideas in those areas.”
Brady added that Republican lawmakers were actively working with the president and suggested the White House and Congressional Republicans share the same goals regarding retirement savings.
“He shares the goal. We are continuing discussions with the president all focused on saving more, saving sooner,” Brady said.
Brady’s statement breaks with the sentiment Trump expressed in a Monday tweet.
There will be NO change to your 401(k). This has always been a great and popular middle class tax break that works, and it stays!
— Donald J. Trump (@realDonaldTrump) October 23, 2017
Trump’s tweet addressed discussion among conservative policymakers of limiting pre tax contributions to 401k accounts. The idea is being considered as a partial remedy to the main obstacle obstructing GOP tax reform efforts: fitting $5 trillion in tax cuts into a $1.5 trillion deficit allowance provided by the House passed budget package.
Senate Finance Committee Chairman Orrin Hatch pushed back on the finality of Trump’s tweet in a statement issued Monday afternoon.
“Presidents have a right to make determinations and we ought to pay attention to it, but there are some things he shouldn’t be shooting down,” Hatch said. “He can make his moves, but we’re going to do things up here that might be a little bit different and that might be one where we have to say we disagree, but we’ll see.”
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