Published: Wednesday, October 25, 2017 @ 2:12 PM
Updated: Wednesday, October 25, 2017 @ 2:12 PM
The Associated Press
— WASHINGTON (AP) — The Latest on Republican plans to overhaul the tax code (all times local):
President Donald Trump says he shut down speculation that 401(k) plans may be changed to pay for tax cuts because they’re important for middle-class retirement.
Trump said Wednesday he didn’t want the speculation to go “too far” and “that’s why I ended it very quickly.”
Trump acknowledged the plans may still be used for negotiating leverage, but says there are “certain elements of deals you don’t want to negotiate with.” He says the House committee chairman who will help write the tax legislation also knows how important the plans are.
News reports first surfaced over the weekend that Republican lawmakers were considering 401(k) changes to help pay for the tax cuts.
Trump tweeted Monday: “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!”
Sen. Marco Rubio is expressing optimism that an expansion of the child tax credit will be included in the Republican tax overhaul plan.
The Florida lawmaker said Wednesday that his “sense is it will be in the underlying bills.” He said he’d like to see the $1,000 credit doubled and made fully refundable and projected the cost would be $435 billion over 10 years.
Rubio says this provision is needed because without it people could “see a tax increase, which nobody around here is prepared to justify because you can’t.”
Critics argue the GOP tax plan disproportionately benefits the wealthy.
Rubio will appear at a press conference with Ivanka Trump on Wednesday to promote the effort. The first daughter has been working with him on the expansion.
The head of the House tax-writing panel isn’t ruling out changes to the 401(k) retirement program to raise revenue for tax cuts. It’s a potential break with President Donald Trump.
Ways and Means Committee Chairman Rep. Kevin Brady says he’s discussing the 401(k) issue with Trump, who has shot down the possibility of changes to the popular savings program. Trump promised in a tweet Monday that it will be untouched.
Republican lawmakers have been considering changes to the 401(k) structure, such as limiting the amount of tax-deferred contributions employees can make, as a way to help finance tax cuts in major legislation.
“We’re working very closely with the president,” Brady, R-Texas, told reporters Wednesday at a Christian Science Monitor breakfast.