Increased Retirement Benefits for American Workers Thanks to Tax Reform
‘Recent estimates suggest that two-thirds of Americans do not contribute to a 401(k). A lack of retirement savings can seem like an abstract concept for young workers. But for some senior citizens, it becomes a harsh reality…Tax reform is already helping remedy a part of this problem. Major companies and small businesses alike have announced plans to reinvest tax reform savings in their employees’ retirement accounts.’
WASHINGTON, D.C. – U.S. Senate Majority Leader Mitch McConnell (R-KY) delivered the following remarks today on the Senate floor regarding the regarding the benefits Americans across the country continue to see from tax reform:
“Every day, we hear of more ways that tax reform is immediately helping American workers, job creators, and middle-class families across the nation. But this generational reform was not designed to be a flash in the pan. We’re already seeing ways it will continue to benefit hard-working Americans years, even decades, down the road.
“Along with bonuses and wage increases, many of the 400-plus companies that have announced enhanced employee benefits are also significantly expanding their contributions to workers’ retirement savings accounts. In recent years, tight budgets have forced too many families to forego investing for the future in order to cover today’s expenses.
“Recent estimates suggest that two-thirds of Americans do not contribute to a 401(k). A lack of retirement savings can seem like an abstract concept for young workers. But for some senior citizens, it becomes a harsh reality. While the poverty rate for Americans under 65 has decreased since 2015, it has increased among those 65 and older.
“Tax reform is already helping remedy a part of this problem. Major companies and small businesses alike have announced plans to reinvest tax reform savings in their employees’ retirement accounts.
“Cigna is adding $30 million to its employee 401(k) program. Aflac is doubling its 401(k) match for its 10,000 employees. In my home state of Kentucky, workers will benefit from increased or accelerated retirement contributions by major employers such as UPS, Brown Forman, Anthem, and FedEx.
“As employers of all sizes continue following suit, more American families will have more flexibility as they plan for the future. And at the same time of course, lower tax rates are increasing take-home pay, making it a little easier to cover today’s expenses. More money in workers’ pockets for today, and more money in their retirement plans for tomorrow -- all thanks to tax reform.”
Related Issues: Taxes, Tax Reform, Economy
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