ERIC, as part of a coalition of trade associations (Coalition to Protect Retirement) focused on tax reform and retirement incentives, recently sent House Ways and Means Committee Chairman Dave Camp (R-MI) a letter regarding his “discussion draft” on tax reform. The Coalition believes Congress should encourage retirement savings for American workers through the preservation of current tax incentives.
The letter highlights the unique tax incentives associated with retirement savings and, in particular, explains that these incentives are tax deferrals and not tax exclusions. The letter raises concerns with the proposal to impose a 10-year freeze on limits on annual contributions to retirement plans and IRAs. The Coalition also raises concerns with the 10% surtax imposed on higher income earners. Changes to the rules, additional taxation and uncertainty could discourage certain individuals from participating in an employer-sponsored retirement plan.
The letter expresses our support for Chairman Camp’s efforts concerning overhauling and simplifying the tax code and points out some general concerns related to the specific proposals related to retirement tax incentives.
Contact Kathryn Ricard (firstname.lastname@example.org) with any questions or comments on the letter or this issue.