New Tax Law Helping Americans Save for Retirement
Last year, pensions of households and nonprofit organizations rose to nearly $23 trillion. Reforms to the business and individual sides of the tax code will help retirement savers boost their pension values by even more.
At a Tax Policy Center event this week, Senate Finance Committee Chairman Orrin Hatch (R-Utah) underscored how business tax reforms will help Americans better save for their future:
“A fellow…from the Tax Policy Center…testified that about 37 percent of corporate stock ownership was held in retirement plan accounts. That means more than one out of every three dollars currently invested in the stock market is held by a pension or retirement plan…Making the pension and retirement owner category the largest share of overall stock ownership. And, what’s more, those numbers have been confirmed by the folks at JCT. Making the pension and retirement owner category the largest share of overall stock ownership. No matter how you slice it, by reducing the corporate tax rates, we have lowered the tax burden and increased the potential for generating wealth for the American middle class.”
And, there is more good news.
Companies are contributing more to their employees’ retirement accounts. Businesses like Visa, Aflac and Honeywell are boosting 401(k) contributions thanks to reforms to the business side of the tax code. The list of companies investing in their employees’ future grows by the day.
The new tax law is also helping to bring tax bills down, leaving Americans with more money to save. Under the new tax law, a typical family of four will see their taxes drop by more than $2,000. Lower taxes translates to higher take-home pay, leaving Americans with more money to save for retirement.
Bottom line, as Americans across the country see the benefits of the new tax law, they have an opportunity to use those savings to save and invest now to ensure their retirement goals are achieved.
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