Trump expects Congress to pass a new tax plan before Thanksgiving; how it could impact your retirement savings

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WASHINGTON, D.C.-- President Donald Trump raised expectations today about Republicans' timetable for passing tax reform, saying he expects the currently unwritten overhaul of the tax code on his desk by Thanksgiving.

In an op-ed in the USA Today published Sunday, the President said the economy can't "take off" unless "we transform the outdated, complex tax code."

The tax plan Trump and Republican leaders are pushing for reduces tax rates on corporations from 35% to 20% and consolidates individual tax rates to 12%, 25%, and 35%, possibly leaving room for one higher bracket for the wealthy. Income brackets for those rates haven't been set.

Some members of Congress worry tax cuts will increase the deficit even more. Democrats say they won't support a plan that benefits the rich and doesn't help the middle class.

Senate Majority Leader Mitch McConnell (R) says Americans are getting ahead of themselves with all this speculation. "It's way too early to predict the various details," he says. "But I can tell you, the goal here, the goal here is to get middle class taxes down, to prevent job exportation, which our current business taxes really encourage people to go offshore, and to produce more jobs and opportunities for the American people."

House Republicans are also looking into sharply reducing the amount of money American workers can put in their 401(k)s. Right now, workers can save up to $18,000/year in their retirement accounts without paying taxes upfront on that money. Americans over the age of 50 can save up to $24,000.

Under the new proposal, all workers would be limited to putting $2,400 in their 401(k)s.

It's unclear if this proposal will pass through Congress, as it's already getting major push back from Wall Street.

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