Sunday, October 8, 2017

Is the Trump Administration Planning to Eliminate Current Tax Deductions for IRAs and Keoghs?

Let's hope for continued incompetency from these two.
David Stockman, director of the Office of Management and Budget (1981–1985) under Ronald Reagan, thinks so. He writes:
There is also a...huge revenue loss [tp the government] on the worker side due to the tax deductibility of individual retirement plans. This includes a projected revenue reduction of $236 billion over the next 10 years due to IRAs; and another $471 billion owing to self-employed Keogh type plans....

What Trump's Goldman banksters have in mind is turning some or all of these retirement preferences into
so-called "Roth 401(k) plans". That means you don't get to take the tax deductions now when you put the money into the plan; instead, the deduction would occur perhaps 20 or even 40 years from now when you take it out to pay the nursing home bills!
Fortunately, the Trump-Goldman Sachs tag team of Steve Mnuchin and Gary Cohn, are incompetents when it comes to political plotting and so they may propose the above but Stockman thinks it has little chance of passing in Congress:
[T]here's not a snowball's chance in the hot place that any of these exclusions will be eliminated or even slightly modified----even if Mnuchin & Cohn are stealthily trying to do just that. To wit, they have kept in the shadows for the moment a double shuffle that would appear to help staunch the red ink from the Donald's tax plan.
Let's hope they are as incompetent as they appear to be.


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