Trump, GOP at odds over using 401(k)s to pay for tax cuts
Trump appeared to bolster that pledge Wednesday, saying he moved swiftly to end speculation that the tax-deferred savings program may be changed because it's vital for middle-class retirement security.
But he went on to muddy the waters, when asked about Rep.
"Maybe it is, and maybe we'll use that as negotiating," Trump said during an impromptu news conference as he left the
Brady, chairman of the
And a senior Republican senator signaled he'd vote for a tax bill even if it crimped 401(k) tax benefits.
With 55 million
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.
Asked specifically if the retirement program was no longer a possible target, Brady said, "We're working very closely with the president."
"We think, in tax reform, we can create incentives for Americans to save more and save sooner, which can help them," said Brady. "So we are exploring a number of ideas in those areas. ... We are continuing discussions with the president, all focused on saving more, saving sooner."
Brady's counterpart in the
Hatch, who heads the
Another senior member of the panel, Sen.
Noting disarray among
While retaining the possibility of changing 401(k)s, Brady also said he continues to seek a compromise with rebellious
"I do expect to reach an agreement with our high-tax (state) lawmakers," Brady, R-
One compromise being considered, to avoid repealing the state-local deduction altogether, would cap it at a single taxpayer's adjusted gross income of
Opposition in the House has threatened the enactment of an ambitious overhaul of the
The deduction for state and local taxes is a widely popular break used by some 44 million Americans, especially in high-tax, Democratic-leaning states like
Trump administration officials and the congressional Republican leaders who crafted the tax overhaul plan eye the estimated
The
Crucial details of the plan have yet to be worked out.
Employees' earnings from defined-contribution retirement plans such as 401(k)s aren't taxed until retirement; pay-ins by both employers and employees also receive tax-deferred status. That cost the government
AP Congressional Correspondent
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