Trump Wants To Tax Your Retirement Account To Pay For Tax Cuts For The Rich and Corporations

[riversedge]

Link to tweet

Trump Wants To Tax Your Retirement Account To Pay For Tax Cuts For The Rich and Corporations

By Jason Easley on Mon, Sep 4th, 2017 at 11:39 am


One of the proposals being floated by the Trump White House on tax reform is to tax the retirement plan contributions of workers upfront to pay for tax cuts for the wealthy and corporations.

Politico reported in August, “One idea quietly being discussed would be taxing the money that workers place into their 401(k) savings plans up front: an idea that would raise billions of dollars in the short-term and is pulled from the Camp plan. This policy idea is widely disliked by budget hawks, who consider it a gimmick; the financial services industry that handles retirement savings; and nonprofits that try to encourage Americans to save.”


......................................

Republicans have learned nothing. They are still trying to sell a big tax cut to the wealthy and corporations as a tool for economic development. History and the data both show that tax cuts for the wealthy don’t grow the economy. Trickle down economics doesn’t work. Republicans are going to blow up the deficit and take money out of the economy with tax cuts for the top, and then feign ignorance when the inevitable economic recession occurs.

The plan to tax workers to give rich people a tax cut perfectly sums up the Trump presidency. Donald Trump isn’t governing for regular Americans. Trump is only interested in helping people like himself and pandering to the bigoted right wing fringe that makes up the bulk of his support.
............................................

[smirkymonkey]

1. This is bullshit!

As long as people are stupid enough to passively tolerate these moves, they will keep pushing for everything they can get from us. People should be outraged by the very suggestion of this!

[pwb]

2. Tax cuts should be in a dollar amount for every person, not a percentage.

And corporations are people so they should get the same as us.

[CousinIT]

3. Their cutting immigration into the US is a back door cut to Social Security too:

https://www.democraticunderground.com/10029556841

[Egnever]

4. Please let them try to pass this

pretty please!

The blowback will be epic!

[Joe941]

5. Is this just forcing people into Roth 401k instead of regular 401k?

I already contribute to Roth 401K so I pay taxes on my contributions already. If so this is a non story.

[central scrutinizer]

6. Would make them the same as a Roth IRA?

Where you pay tax on the front end but take distributions tax free? Of course there is less incentive to save and you may be in a higher tax bracket if you can't make tax-deferred contributions.

[spin]

7. That might work out if when you retire and draw money from your...

401K you do not have to pay income taxes.

I'm at that point now.