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Brookings Institute Vice President and Co-director, Economic Studies Karen Dynan says that tax spending meant to promote retirement saving isn’t wor...
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-- have raised calls for a complete overhaul -- tax code.
Now there's talk that tax breaks like your 401K could be at risk.
But our next guest just wrote a report calling for expanding tax breaks -- more Americans and small businesses.
Can -- and it is the vice president and co director of the economic studies at the Brookings institute.
Karen -- being with a -- us do you think there should be more tax breaks for low income.
Low income taxpayers and small businesses how come.
Well -- -- but paper is really about making the tax code more back -- The fact is the federal government is spending a ton of money on these retirement savings programs and has not clear that these programs are.
Serving their intended purpose -- So.
You know much of those -- he goes to higher income households I think that thinking marriage and that those -- you.
Most of the saving -- entirely tracks.
But the problem is that these -- they're -- a lot anyway and research suggest that giving them more of a subsidy doesn't.
Doesn't hurt either save more so much it's just reallocate their savings -- well.
People don't get these tax breaks -- -- most of them are limited at a certain income tax level anyway so they're sitting on their own in the lower income people well.
Thanks for the apparel tax hike they need the money just to make the bills I don't really think it has much to do with the tax benefits.
Yeah well that's.
That is something on paper it -- address.
There are innocent -- knowledge there are some families that don't have the income to say that what I share with my numbers and -- is that you know there are lots and lots of families -- 40% of American pilot that don't have large amounts financial assets that could be saving.
And yes they're not very responsive to -- the current types of incentives we have -- attacks -- -- what we know does work.
Is 401K plans -- they are easy.
They.
Get household over that kind of hurdle I figure out how to do this saving because you can automatic.
Not actually -- keep all went default contribution -- That's seems fit to work well and that's why I arrogant paper that it makes sense still -- -- give firms tax breaks.
Says will establish more of these plant health plans.
But but I mean taking away from the wealthy they don't get that stuff to begin with right I mean.
You're limited at 1610171000.
For your 401K right now regardless of your income tax bracket so.
-- cutting deductions in credit for the wealthy are not gonna help your savings problem here.
Proposing is that we -- the deductions found that 28%.
I it say it's a small amount of money -- it is enough money to.
To put in some measures that would encourage an expansion of 41 K like accounts and still -- some.
The money left ever to help do you lower the deficit.
Yet well you know -- You gotta get.
You gotta get them to stay away from the for a one K that's for sure can dining with the Brookings Institution thank you -- we have some breaking.
