Washington
The legislation is a longstanding goal for Capitol Hill Republicans who see a once-in-a-generation opportunity to clean up an inefficient, loophole-cluttered tax code. But there is lingering opposition from northeastern Republicans fearful of losing a cherished deduction for state and local taxes and anxiety among other rank-and-file lawmakers over emerging details.
Senior GOP lawmakers confirmed the decision to retain existing rules on 401(k) accounts, which came after assurances from President Donald Trump that they would not be changed. Ways and Means Committee Chairman Kevin Brady, R-Texas, had hoped to reduce 401(k) contribution limits, in part to generate new tax revenues in the near term to finance the cuts to income tax rates.
Another lawmaker cautioned that the decision might still change. The lawmakers required anonymity because the tax panel is trying to keep its deliberations secret until the tax measure is released today.
Brady said the panel hoped to meet Trump’s goal of a cut in the top corporate tax rate from 35 percent to 20 percent but allowed that the change would not be permanent because of arcane Senate rules. Republicans and Trump argue sharply cutting tax rates for businesses improves U.S. economic competitiveness.
Influential conservative Rep. Mark Meadows, R-N.C., dismissed proposed retirement changes as a “non-starter,” adding “that’s what most of middle-income America uses as their nest egg.”
Top Republicans vowed to release the measure today after missing a self-imposed Wednesday deadline and dismissed rumors that the unveiling might be further delayed.