The Briefing Room
General Category => Politics/Government => Topic started by: Right_in_Virginia on September 16, 2018, 03:56:16 pm
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Republicans push to give your savings account a tax cut
Washington Examiner, Sep 16, 2018, Joseph Lawler
House Republicans, having cut taxes on business income and individual earnings, are now looking to cut them on savings, through new universal savings accounts.
The House GOP attached the accounts, allowing individuals to save up to $2,500 annually on a tax-privileged basis, to what they are calling “Tax Reform 2.0" — a permanent extension of the individual-side tax cuts included in the December tax law.
House Republicans advanced the legislation through the Ways and Means Committee last week. The legislative package isn’t expected to reach President Trump’s desk this year, but the inclusion of the savings accounts sets up a future GOP Congress to enact them and transform the way Americans save.
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The accounts would give individuals a tax-privileged savings option far more accessible than the ones that exist today, such as company-sponsored 401(k)s or 529 college savings plans.
Any individual would be able to put up to $2,500 each year after-tax, and then take out savings tax-free for whatever purpose — retirement, a down payment, car repairs, etc. There wouldn’t be any income limits or penalties for early withdrawals.
More: https://www.washingtonexaminer.com/policy/economy/republicans-push-to-give-your-savings-account-a-tax-cut (https://www.washingtonexaminer.com/policy/economy/republicans-push-to-give-your-savings-account-a-tax-cut)
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Sounds like a plan. But what about when the savings are withdrawn? Penalty, or okay after so many years, or what.
You know one has to pay taxes on 401K's etc. if you withdraw funds early.
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The Party of the Rats will hate this. Their voters don't save. Only "rich" people save money.