President Donald Trump and Republican leaders in Congress publicly argued over major provisions of their upcoming tax legislation on Wednesday, a day before the House of Representatives was scheduled to take a critical vote to move the effort forward.
House Ways and Means Committee Chairman Kevin Brady, R-Texas, on Wednesday suggested that his upcoming tax bill could force changes to 401(k) plans and other retirement accounts, a move that would buck a promise from Trump that those accounts would be left alone.
“We think in tax reform we can create incentives for people to save more and save sooner,” Brady said at a breakfast hosted by the Christian Science Monitor.
Brady, who’s expected to introduce a tax bill next week, said that 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,” Brady said, who said he was working closely with Trump on the issue. “We are continuing discussions with the president, all focused on saving more and saving sooner.”
Trump on Monday pledged the Republican tax effort would not change the rules for the 401(k) accounts.
“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!” Trump wrote on Twitter.
(c) 2017, The Washington Post · Damian Paletta, Mike Debonis, Tory Newmyer