Neal Urges Business Leaders to Invest Tax Windfall in Employees’ Retirements
WASHINGTON, DC – Today, Ways and Means Ranking Member Richard Neal (D-MA) sent a letter to Business Roundtable Chairman Jamie Dimon encouraging companies to help their workers weather the United States’ retirement crisis and invest savings they received from Republicans’ $2.3 trillion tax law in their employees’ pensions or 401(k) plans. Given that 50 percent of Americans do not have enough savings to live comfortably in retirement, Rep. Neal emphasized the opportunity businesses have to improve their workers’ long-term financial security.
“Companies now face a choice. Will they choose to spend their newfound financial windfall on stock buybacks or will they make a real investment in their workers’ financial and retirement security?” Rep. Neal wrote. “As millions of Americans face dire futures of financial uncertainty, it is my hope that the Business Roundtable will use its leadership and influence to encourage companies to contribute greater amounts to their employees’ retirements, so that more Americans will be prepared for life after work.”
The Republican tax law provides permanent, substantial tax cuts for corporations, while individuals receive much smaller, temporary breaks. Moreover, 83 percent of the law’s individual tax cuts ultimately go to the wealthiest one percent of Americans, leaving middle-class workers behind.
Rep. Neal added in his letter: “During the recent recession, a number of companies suspended these contributions, which resulted in many retirees having to postpone their retirement. Fortunately, with improvements to the economy and markets, most employers have reestablished those contributions. This new tax break provides an opportunity for companies to ‘make up’ those contributions and even increase levels of savings for employees.”
Full text of the letter is available here.
Congressman Neal was recently appointed to the Joint Select Committee on the Solvency of Multiemployer Pension Plans, and has introduced H.R. 4444, the Rehabilitation for Multiemployer Pensions Act, which has the bipartisan support of 148 members of the House of Representatives.