King and the 15 Democratic Senators who signed the letter to committee leaders, expressed their concern that the Senate tax reform proposal may change or eliminate some existing tax incentives. One of them is a proposal to eliminate or limit the amount of pre-tax money that can be contributed to 401(k) accounts. Studies show that workers contribute about $2,700 annually to their employer-sponsored retirement plans. This new tax limit that is reportedly being considered by Republicans is $2,400, which is much less than what the average person contributes.
“Tax reform should be about strengthening the financial security of low-income and middle-class Americans, both today and into the future,” the senators wrote to committee leaders. “Congress needs to do more to improve retirement incentives for the American people, not less. Dramatically altering incentives for retirement simply to raise short-term revenue to pay for tax cuts for the wealthy is a cynical ploy that will harm hardworking Americans in every state. We urge you to reject any legislation that would harm the incentives on which Americans rely today to save for their retirement.”
The letter was signed by Sens. King, Patrick Leahy (D-VT), Kirsten Gillibrand (D-NY), Tammy Baldwin (D-WI), Tammy Duckworth (D-IL), Maggie Hassan (D-NH), Jeanne Shaheen (D-NH), Richard Blumenthal (D-CT), Cory Booker (D-NJ), Tom Udall (D-NM), Chris Van Hollen (D-MD), Chris Murphy (D-CT), Ed Markey (D-MA), Jack Reed (D-RI), Kamala Harris (D-CA), and Amy Klobuchar (D-MN).