Boost to Economy: No Taxes on Earnings Paid to 401k/ Pension Plans
But aren’t 401K and pension funds untaxed now?
You as an individual don’t pay any tax on these earnings (until withdrawn) but the corporation must pay a tax on these earnings even if they are going to your retirement fund.
This means that right now every worker who is saving for retirement is being taxed at a marginal 35% rate! (higher if Obama is elected)! If a corporation has $100 in taxable income, 35% goes to pay taxes, that leaves only $65 to the retiree’s pension or 401K.
With the contribution limits on 401Ks and pension plans, these taxes are being paid by MIDDLE class Americans. We conservatives want ALL Americans to become owners in our country. This proposal would increase the incentive for people to save, become owners, grow AMERICAN companies, and create jobs.
I estimate the cost of this proposal at $54 Billion (less than the cost of those $500 checks we got in the mail)