Trump administration weighing tax incentive for US households to invest in stock market

Trump administration weighing tax incentive for US households to invest in stock market
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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. 

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“Nothing’s ruled out,” one senior administration official told CNBC. “Nothing’s been ruled in, either.” 

Larry KudlowLarry 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 MooreTrump economist touts nation's low poverty rate Sunday shows - Trump team defends coronavirus response Economist Moore calls on Pelosi, Schumer to 'get a deal done' amid stimulus stalemate MORE, who works at the conservative Heritage Foundation and is a White House ally, told CNBC.

President TrumpDonald John TrumpOmar fires back at Trump over rally remarks: 'This is my country' Pelosi: Trump hurrying to fill SCOTUS seat so he can repeal ObamaCare Trump mocks Biden appearance, mask use ahead of first debate 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.’”