Tax reform was one of President Trump’s campaign promises and the White House says there will be a tax reform bill on the Senate floor in November. According to a benefitspro.com article, while not much is known about the tax reform package, tax-preferred treatment of contributions to qualified retirement plans is still under discussion.
Benefitspro.com reports the White House and Congressional leaders said tax reform wouldn’t include a new border adjustment tax. According to the House Republican budget blueprint, that tax would raise $1.2 trillion over 10 years. The border adjustment tax was supposed to offset the corporate tax cut from 35 percent to 20 percent. According to the benefitspro article, with the border adjustment tax scrapped, the tax break on contributions to qualified retirement plans might end being an attractive option to make up for the corporate tax cut.
Benefitspro reports the GOP will be more aggressive on tax reform since they faced political humiliation for the failure to repeal and replace Obamacare and the fate of retirement plans will depend on how much corporate, business and individual rates are slashed.