Heitkamp: Tax Reform Must Protect Retirements for Hardworking North Dakotans

Tuesday, October 31, 2017

Contacts: Abbie McDonough/Ian Jannetta, (202) 224-8898

Heitkamp: Tax Reform Must Protect Retirements for Hardworking North Dakotans

Senator Concerned by Reports that Emerging Plan May Raise Taxes on Americans Saving for Retirement

WASHINGTON, D.C. - U.S. Senator Heidi Heitkamp, who has held four listening sessions on tax reform across North Dakota, today called for any tax reform plan to protect retirement security for hardworking Americans.

Recent reports indicate that House Republicans may drastically limit pre-tax contribution limits to 401K retirement savings accounts, lowering the cap from $18,000 to $2,400. This would amount to a tax increase on Americans who are trying to responsibly save for retirement, including the 38 percent of those making between $10,000 and $24,999 who currently contribute more than $2,400 to their retirement accounts.

"I've long said I'm eager to work with Republicans and Democrats on a tax reform package that simplifies the tax system and reduces taxes on hard-pressed middle income families and small businesses," said Heitkamp, North Dakota's former tax commissioner. "But I'm very concerned by reports that Republicans intend to reduce the tax-free contributions that working Americans put into their 401K plans to save for retirement. Taking that step would raise taxes on North Dakota families and reduce their retirement savings. Men and women in rural America are working hard and playing by the rules, but it's getting more and more difficult for them to make an honest living while saving for retirement. That's just wrong, and we can't allow actions that will take away families' safety net."

At listening sessions she held in September and October in Fargo, Grand Forks, Bismarck, and Minot, Heitkamp has heard from small business owners, workers, families, and retirees about their thoughts and priorities for tax reform. At every session, North Dakotans told her that protecting incentives to save for retirement is critical to economic security for those working hard to earn a paycheck.

Saving for retirement is already a challenge for millions of Americans. Across the country, up to two-thirds of the 58 percent of workers with access to a retirement savings account are not saving nearly enough to cover the costs of retirement. That leaves about 30 million full-time employees without access to a retirement plan. In North Dakota, these figures are even more dire - about 41 percent private-sector employees work for an employer that does not offer a retirement plan. These workers include truck drives, sales clerks, coal miners, and other hard working professionals across North Dakota and rural America.

For tax reform to support for North Dakotans, Heitkamp is working to make sure that any proposal:

* Levels the playing field for North Dakota workers, families, and small businesses.

* Protects and secures retirements.

* Makes it easier and less costly for families and businesses to file taxes.

* Grows the economy and is fiscally responsible.

In September, Heitkamp joined President Trump as he outlined his broad goals for tax reform in a speech in Mandan. She then joined the president and a bipartisan group of senators at the White House for a discussion on tax reform, where she made clear that any tax reform bill must support North Dakota's working families, small business owners, and farmers and ranchers.

Earlier this month, Heitkamp attended a bipartisan dinner with Ivanka Trump, Jared Kushner, and Treasury Secretary Mnuchin to discuss tax reform, where she reiterated her priority to make tax reform work for workers, families, and retirees.

Heitkamp has long fought to protect and improve retirement security for working families. Earlier this year, during her first hearing as ranking member on the U.S. Senate Committee on Banking, Housing, & Urban Affairs' Subcommittee on Economic Policy, Heitkamp spotlighted the vulnerabilities and struggle too many rural and working American families face in saving and preparing for retirement.