Tag: tax deduction
I just reviewed a manuscript where once again the authors proposed changing the tax incentive for retirement saving from a deduction to a credit. I used to push this idea myself, but now think it’s a diversion that could increase the revenue loss to the Treasury and would do little to increase saving. Let’s put…
The financial services industry seems very exorcised by a relatively modest proposal in Joe Biden’s tax plan – namely, changing the tax incentive to save for retirement from a deduction to a flat, refundable tax credit. Let’s see if this proposed change would really “upend” our entire 401(k) system. Saving under current law…