The GOP and President Trump are going back and forth on his promise to cut taxes. While there is no firm plan in place, some of the options are seeing the light of day.
The almost $6 trillion plan would cut taxes for corporations and middle-income payers. The President also wants fewer tax brackets, from seven to three or four, and death for the death tax.
Now, they are trying to figure out how they are going to pay for the cuts by generating more revenue in other areas.
One plan that is talked about among lawmakers would be major changes to the 401K program.
401K is used by about 55 million US workers to save a portion of their income tax deferred – NOT tax free.
Currently, there is about $5 trillion in 401K accounts, and lawmakers from BOTH parties want to get their money-grubbing hands on it.
They are looking at that number and salivating.
Soooo, one way they are considering altering 401K to get the money to pay for tax cuts is to limit how much US workers can contribute per year.
As it stands now US workers can contribute $18,500 tax deferred income to their 401K per year. Some lawmakers want to reduce that down to around $2400!!!
Absolutely not! No way!
Talk about killing the greatest saving/investment vehicle the middle class has ever known, and doing do at a time when the Social Security Administration announced they spent more than $1 trillion for the first time this year.
Clearly SS is not sustainable at that level. Americans must be encouraged to save more on their own, and not depend on a paycheck that might not be there at retirement age.
Congress must remove 401K from the table, and try doing something that makes more sense.
CUT SPENDING FIRST.
Real spending – not just rate of spending growth.
Slice up the amount of money DC spends every year.
Be brutal. If it isn’t essential – KILL IT.
I realize spending cuts are the LAST thing lawmakers want to look at when trying to balance the budget and offset tax cuts, but it should be the first every time.
Keep their hands off 401K!
Senator Ted Cruz will be on my show at 808am to discuss tax cuts. Please tell a friend to listen.