The White House is reportedly considering ways to incentivize U.S. households to invest in the stock market as part of an upcoming tax cuts package.
Four senior administration officials familiar with the discussions told CNBC that the proposal, which is one of several currently under consideration, would include a clause to allow some of household income to be treated as tax-free should families invest outside a traditional 401(k).
The plan would allow households earning up to $200,000 to invest $10,000 of that income on a tax-free basis, though no figures are set in stone.
“Nothing’s ruled out,” one senior administration official told CNBC. “Nothing’s been ruled in, either.”
Larry KudlowLawrence (Larry) Alan KudlowMORE, the White House’s top economic adviser, added that the incentive approach most seriously under consideration would focus on creating universal savings accounts, which would combine retirement, education and health care savings.
The tax break, if implemented, would represent “a pretty substantial amount of money for people” to have for retirement, economist Stephen MooreStephen MooreThe Hill’s Morning Report — AG Barr, GOP senators try to rein Trump in Republicans expect Trump to withdraw controversial Fed nominee On The Money: Fed chief warns Congress on deficits | Trump blames Powell after Dow dips slightly | Trump withdraws nomination of former US attorney for Treasury post MORE, who works at the conservative Heritage Foundation and is a White House ally, told CNBC.
President TrumpDonald John TrumpTrump declares war on hardworking Americans with new budget request Avenatti found guilty in Nike extortion trial First, we’ll neuter all the judges MORE rolled out and signed out a tax plan in 2017, a piece of legislation he and his allies have said is responsible for economic gains. The president has floated another tax cut is in the works should he be reelected.
“It’s sort of an idealistic document,” a senior official involved in discussions told CNBC. “Sort of, ‘If you reelect this administration, this is what you’re going to get.’”