Senate Republicans plan to hold a vote on a proposal to make certain retirement plans that invest in annuities and 401(k)s subject to the so-called “pension savings tax” on Thursday.
Sen. Susan Collins Susan Margaret CollinsThe Hill’s Morning Report — Kavanaugh confirmation faces fresh uncertainties Kavanaugh sparring intensifies as GOP seeks to rebuild coal infrastructure Dems fight to protect Medicare and Medicaid MORE (R-Maine) is sponsoring a bill that would impose a $50 per-year cap on retirement benefits, a move that would likely prompt the Trump administration to reject the measure.
Republicans are hoping to pass the measure before the end of the month to make it easier for lawmakers to pass their own overhaul of the tax code, a priority for the president.
Collins said the tax was “a little bit overkill,” but she wants to get it passed because it’s a “really good start” to getting to a compromise.
Republicans have said they would seek a broad rewrite of the U.S. tax code.
The White House said in a statement on Thursday that they are committed to getting a bill done this year, but noted that a tax overhaul is not a given.
“The president will be voting for it,” said White House press secretary Josh Earnest.
“We have a bipartisan plan that we are confident will pass the Senate.”
The administration said in the statement that “it will be very helpful to get a bill through the Senate with a lot of bipartisan support” to prevent any “costs” from mounting for Americans and companies.
The plan also would provide a tax break for “pass-through” businesses, meaning that businesses are taxed at a higher rate than their owners.
The Senate GOP tax plan would add more than $400 billion to the federal deficit over 10 years.
The measure is also expected to provide $350 billion in tax relief to the middle class and provide $150 billion in new tax relief for the wealthiest Americans.