McConnell Hails Tax Reform as Positive for Retirement Benefits

By John Iekel • March 07, 2018 • 0 Comments
Senate Majority Leader Mitch McConnell (R-KY) in remarks on the Senate floor on March 6 cited increased retirement benefits as one of the results of enacting the Tax Cuts and Jobs Act of 2017 (TCJA).

“Every day, we hear of more ways that tax reform is immediately helping American workers, job creators, and middle-class families across the nation,” said McConnell, adding, “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,” said McConnell, noting that “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),” McConnell said. “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,” he added. “Tax reform is already helping remedy a part of this problem.”

McConnell observed that, “Major companies and small businesses alike have announced plans to reinvest tax reform savings in their employees’ retirement accounts” and cited examples: “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.”

McConnell closed by commenting that workers having more money in their retirement plans is one of the results that is “all thanks to tax reform.”