President Trump promised Monday there will be "no change" to tax incentives for the popular 401(k) retirement programs. "This has always been a great and popular middle class tax break that works, and it stays!" Trump tweeted. The AP reports the president appeared to be responding to a recent report in the New York Times that Republican lawmakers were considering limiting the amount workers could save in 401(k) retirement accounts. He tweeted: "There will be NO change to your 401(k)." The Times quoted sources who said that the current annual contribution cap of $18,000 would possibly be lowered to $2,400. The idea is that because income put into a 401(k) isn't taxed until it's withdrawn years later, lowering contributions would generate immediate tax revenue for the government—an estimated $115 billion in 2018.
House Republicans will be working to pass a budget this week so they can turn their attention to tax reform. Trump warned Sunday that action on tax reform is crucial to avoiding political failure in 2018. He personally implored House GOP members on a conference call to swiftly adopt the budget that was passed last week by the Senate, with the hope of clearing the way for what he described as historic tax cuts.The Senate's budget plan includes rules that will allow Republicans to get tax legislation through the Senate without Democratic votes or fear of a Democratic filibuster. House Republicans signaled Friday they would simply accept the Senate plan to avoid any potential delay on the tax measure.
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