Are Republicans thinking about killing tax breaks for 401k savings to pay for tax cuts?
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Anonymous
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Good god, if this happens:
https://www.fa-mag.com/news/annuities-industry-worries-retirement-tax-deferrals-are-on-chopping-block-81694.html So, in order to pay for these massive tax cuts for billionaires, there is now talk on the Hill of killing tax deferred breaks for the middle class that are often used to save in a 401k. Utter madness. Billionaires don't need 401ks, so this would literally be a huge transfer of money from the middle class to the ultra wealthy. They're going to argue that there will still be tax free growth in your account and you'd get taxed Roth 401k style. But that is no guarantee at all, because they could just raise taxes on withdrawals in the future, plus Roth 401ks are worse deals for many earners and are much harder to save for since they're a lot more expensive. How many yachts do these goddamn billionaires need? |
Anonymous
| MAGA awaiting talking points…still loading… |
Anonymous
The middle class’s free ride is over. There is plenty of factory work for you and your kids. Knowyour place or Trump and the Republicans will send the military to knock some sense in to you. |
Anonymous
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The Emperor just doesn't have enough clothes to wear yet, you see. |
Anonymous
Majority of MAGAs have zero savings, including retirement. Not sure they will care, regular Republicans however... |
Anonymous
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These GOP tax cuts NEED TO GO.
All of these gyrations to try and make tax cuts happen are doing far more damage than any possible good the tax cuts will ever bring for the average American. IT NEEDS TO STOP. |
Anonymous
Agree completely. And while we’re on the topic - who really wants these tax cuts anyway? Billionaires already have ways of avoiding tax on the vast majority of their incomes - I can’t imagine they are actively pushing for this. And it wasn’t a high priority for the MAGA voter base. Much less important than immigration, inflation, or culture war issues. My only hypothesis is that this is all about “starving” government rather than any interest in letting people keep more of their money. |
Anonymous
| I haven't heard about any tax cuts other than no taxes on tips and no taxes on overtime. The other rates are staying the same unfortunately. So it looks like any tax hikes are to deal with the budget deficit. |
Anonymous
The current tax rates expire at the end of 2025 (this year). Without a new tax cut package of some sort, all the tax changes from Trump 1 disappear. AMT is back, but you can deduct all your state taxes. Rates go up. More people itemize. Really, it simplified a lot but it was not much of a tax cut to my HH. Seemed more fair to me, but we did not benefit from a lot of the provisions. Not rich, UMC. |
Anonymous
PP here. To be clear, I don’t support the current gyrations. The big cuts were to corporate rates and pass through income I believe. It did get rid of the marriage penalty up to a certain point. There were certain aspects I liked for simplicity, but I think the big give away is to corporations. |
Anonymous
| Did you actually read the article? It’s about annuities, not 401ks. |
Anonymous
Did you actually read the article? Sure, the article is focused on annuities, but it is also insuating that all tax deferrals are going to be targeted:
The GOP brought up killing tax deferrals for 401ks the first time Trump's tax cuts were proposed. Trump had to step in and stop it. This time may be different because the amount it is going to add to the deficit is catastrophically bad. |
Anonymous
| Since when did Republicans care about “paying for tax cuts”? I though the extra tax revenue would trickle down. |
Anonymous
This x1000. My MAGA relatives have never had jobs that provided any kind of 401k matching. None of them have IRAs that I know of. Their retirement plans are all based on the social security they get and that's it. |
Anonymous
| This would be suicidal for Rs. No way it's serious. |