Portman Lobbies to Keep Tax Incentives for 401(k)s in the GOP Tax Plan

Oct 31, 2017

Portman says he's had public and private discussions about maintaining the tax-exempt level of retirement plans in the GOP tax plan.
Credit SCREEN CAPTURE

Ohio’s Republican Sen. Rob Portman says he believes the GOP tax plan will encourage growth, stimulate wages and would at least NOT add to the deficit. But, as WKSU’s M.L. Schultze reports, there’s one part of the package he’s fighting.

Portman says he’s been making the argument that cutting how much can be put into tax-exempt 401(k) retirement savings accounts is bad public policy. He says Americans don’t save enough as it is, and he’s been working on providing more incentives for saving since he was in the House of Representatives in the 1990s. Portman acknowledges, under the GOP tax plan, people would still have access to IRAs to save.

“But for most people, particularly young people, they want to get the gratification of that deduction in order to save. And the last thing you want to do right now is discourage people from saving.” 

On a separate issue, Portman says he would not support a bipartisan compromise that makes changes in the Affordable Care Act unless it provides more Health Savings Accounts, high-risk pools and flexibility for states.