Ways and Means Committee Chairman Kevin Brady, R-Texas, said immediately after the vote that he'll release the tax measure on November 1 and that a panel vote is expected the week of November 6.
The independent Urban-Brookings Tax Policy Center's analysis similarly concluded that almost 30 percent of taxpayers earning $50,000 to $150,000 would see a tax increase under the proposed plan, due, in part to the elimination of the deduction for state and local taxes. The SALT deduction has served the nation's citizens well for more than a century.
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. "If the deductibility of SALT is just wholesale gone, I don't think it can pass the House", he said.
That represents a reversal from reports that Republican leaders were considering including a $2,400 a year cap on traditional retirement savings accounts in forthcoming tax legislation.
That timetable is ambitious as numerous details, including ways to raise revenues to help finance cuts to individual and corporate tax rates, remain unresolved. The Senate apparently passed the budget last week and the House endorsed it without changes to move quickly to the tax measure after facing opposition from Republican party members. "It's a joke. That's why Leonard Lance and I have introduced new legislation - the 'Return on Investment Accountability Act, ' our Anti-Moocher bill - that will address this disparity in federal spending and taxes in the states". Overall, the plan is expected to cut taxes by $1.5 trillion over the next 10 years.
The SALT deduction will likely continue to be at the center of debates. King and Oakley say it would boost the financial security of low-income Americans to expand the credit to be more generous, and barring that, to at least promote broader usage of the existing benefit. Except, perhaps, in Paul Ryan's dreams. "Passing tax reform is critical, but we must stop spending more money than we take in".
By the end of the year, the 401 (k) could be capped to help generate a regressive tax cut-or the mere idea of capping it could help kill the bill, further reinforcing the apparent political impossibility of raising taxes on the wealthy.
Tampering with 401 (k) plans, which have largely replaced defined benefit pensions in the United States, would risk alienating tens of millions of workers, as well as the mutual fund operators which rely on the plans for much of their business.
"He wants to increase the amount saved in 401 (K) s, lift the limit, so do I. We want to encourage more people to save sooner in life and save more".
They also hoped to avoid unexpected criticism from Trump, who has railed against Republican hopes of overhauling the 401 (k) provision. The skirmish over retirement savings and also about cutting an acceptable deal with lawmakers elected from SALT or high tax states. On Monday, Trump emphatically tweeted that "there will be NO change to your 401 (k)."
"Today we're one step closer to fixing our outdated tax code, which over the past three decades has grown to be more than 74,000 pages", Estes said.