Manufacturers continue to applaud the thoughtful process underway in the Ways and Means and Senate Finance Committee considering numerous topics that would need to be considered as part of tax reform. Today’s addition came in the way of a Ways and Means Hearing on Tax Reform and Tax-Favored Retirement Accounts. The facts are clear, employer-provided plans play a critical part in our nation’s retirement system. In fact, there are approximately 660,000 private-sector defined contribution plans covering 72 million participants and over 47,000 private-sector defined benefit plans covering about 18 million participants.
A group supportive of retirement provisions and incentives in law today sent a letter urging the Committee to be mindful during this process that employer-provided plans are a key component of our nation’s retirement system and changing the tax treatment and/or lowering contribution levels will result in lower retirement savings.
We were glad to hear the Chairman state that: “As the Committee continues its work toward comprehensive tax reform, it is important to keep in mind that these savings vehicles affect average people who depend on these resources for their retirement. We must ensure that we do not inadvertently take steps that result in unintended consequences that could threaten the retirement security of ordinary families.”
And we hope that the commitment to the policies supporting this system is maintained as the march towards what we hope will be comprehensive tax reform proceeds.
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