Federal Lawmakers Could Eliminate Tax Breaks on Retirement Savings in Effort to Balance Budget
Lawmakers looking to reduce the tax rate for upper-income Americans without breaking the federal budget are eying once-sacrosanct tax breaks on individual retirement savings as a possible cost-saving option.
The topic was put on the table for the first time in a House Ways and Means Committee hearing on Tuesday, although Republican proponents said they are merely voicing their initial thoughts rather than putting forward proposals for change, the Washington Post (reg. req.) reports.
The goal of those looking to reduce tax breaks is to bring down the top 35 percent tax rate to 25 percent, the newspaper explains. But Democratic opponents argue that doing so without eliminating long-established tax benefits may not be possible.
Articles published by Bloomberg and Employee Benefit News detail the arguments and testimony at the hearing.
