Reducing Pre-Tax Contribution Limit

President-elect Trump has proposed many ambitious plans to reduce taxes and extend the TCJA’s 2017 tax reforms. With only a small majority in Congress, most expect that the GOP will attempt to push their agenda through using the reconciliation process, which would not require Democrats to vote in favor of the legislation. That process has strict revenue constraints, which has led to various ideas on how to offset the cost of extending the 2017 tax cuts. One of those proposals would reduce the amount that an individual can contribute to a retirement plan on a pre-tax basis.

We asked two professors and authors of ALM’s Tax Facts with opposing political viewpoints to share their opinions about proposals to reduce the pre-tax retirement contribution limits to increase revenue.

Below is a summary of the debate that ensued between the two professors.