House GOP’s evolving tax bill leaves retirement plan intact
WASHINGTON — House Republicans would leave intact current tax rules on retirement accounts popular with middle class Americans and maintain a top income tax rate for million-dollar earners as negotiators scrambled to finalize the first major overhaul in three decades.
The legislation is a long-standing 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 Thursday.