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Research report

Flattening Tax Incentives for Retirement Saving

Barbara Butrica, Benjamin H. Harris, Pamela Perun, C. Eugene Steuerle
June 30, 2014
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Abstract

Under current law, a large share of tax benefits for retirement saving accrues to high-income employees. We simulate the short- and long-term effect of three policy options for flattening tax incentives and increasing retirement savings for low- and middle-income workers. Our results show that reducing 401(k) contribution limits increases taxes for high-income taxpayers; expanding the saver's credit raises saving incentives and lower taxes for low- and middle-income taxpayers; and replacing the exclusion for retirement saving contributions with a 25 percent refundable credit benefits primarily low- and middle-income taxpayers, and raises taxes and reduces retirement assets for high-income taxpayers.

Research Area

Individual Taxes Retirement
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Meet the Experts

  • Barbara Butrica
    Senior Fellow
  • Benjamin H. Harris
  • Pamela Perun
  • C. Eugene Steuerle
    Institute Fellow and Richard B. Fisher Chair
Research report

New Evidence on The Effect of The TCJA On the Housing Market

Robert McClelland, Livia Mucciolo, Safia Sayed
March 30, 2022
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