GOP Tax Bill Called Key to Better Pensions
Sunday, August 15, 1999; Page A2
Americans can find retirement security for themselves and their children in the GOP tax bill that emphasizes personal savings, Rep. Rob Portman (R-Ohio) said yesterday.
The 10-year, $792 billion tax-cut package passed this month "will result in more pension coverage, better-funded pensions and more retirement security for millions of workers," Portman said in the GOP's weekly radio address.
President Clinton has threatened to veto the bill, contending it is so large that it would bring back government deficits and saying its tax breaks would mainly benefit wealthier Americans.
Instead the president has proposed using some of the surplus for Medicare and some for new government-subsidized retirement accounts for low- and middle-income families.
But Portman, a member of the House's tax-writing Ways and Means Committee, insisted that the legislation would "give millions of American workers the real peace of mind that comes with having your own personal retirement savings."
He said the package would:
– Allow more tax-sheltered deposits into IRA, 401(k) and other pension plans.
– Make pensions portable and let workers become vested in retirement plans in three years instead of five.
– Let people 50 or older make extra, "catch-up" contributions to pension plans.
© 1999 The Washington Post Company