Retirement savings programs in the United States known as 401 (k) will not be altered in the tax reform being debated in Congress, promised on Monday by President Donald Trump.
In a tweet, the president assured that those programs, in which employees can save for their retirement without having to pay taxes and with contributions from the employer, “will remain intact”.
“This has been a popular program among the middle class, it’s a program that works, and it stays where it is!” The president tweeted.
Trump appeared to be responding to a recent report in The New York Times that Republicans are considering cuts to the 401 (k) program.
The president stated in his tweet: “THERE WILL BE NO CHANGE IN THE 401 (k)”.
Republicans in the House of Representatives are trying to pass a budget this week to pave the way for tax reform. Trump warned Sunday that passing the tax reform is essential to win the 2018 legislative elections.
In a teleconference, the president implored Republican representatives to quickly approve the budget approved last week by the Senate so that he can approve what he says will be historic tax cuts.
According to teleconference attendees who asked to remain anonymous, Trump told lawmakers that they are about to achieve a historic feat.
Another source said Trump reiterated several times that “if the budget is not approved, the Republican Party will pay him to the polls next year”.
Trump’s proposal would reduce corporate taxes to 20% and double the standard exemption used by most Americans. The president reiterated several times that approving his plan would be “the right thing for the country”.
The budget plan approved by Congress last week includes rules that will allow Republicans to approve the bill without votes from Democrats, and without the possibility that Democrats will block the procedure.
House Republicans said on Friday they would simply “accept the Senate bill to avoid delays”.
Republicans are eager to pass something in Congress , ANYTHING, it seems to some, as they have not had a single legislative victory, despite controlling the presidency and both chambers of the legislature.
It’s top priority remains to overturn the reform of the health system approved by the previous government.
If the tax reform is not approved, many Republicans fear that a rebellion will erupt within their ranks.