WASHINGTON House Republican leaders sounded notes of optimism Wednesday for tax bills bankers have been advocating.
Speaking to reporters after a news conference, House Majority Leader Richard K. Armey said we are working very well on including a measure that would broaden retirement savings opportunities and another that would create tax breaks for corporations that invest in so-called new markets and community renewal projects in a broader package of other tax bills.
Legislation to widen retirement savings opportunities would increase the maximum that individuals could put each year in individual retirement accounts to $5,000, from $2,000, and increase allowable contributions to 401(k) accounts to $15,000, from the current $10,500. It would also make it easier for small businesses to offer employee pension plans and would let workers older than 50, or those who have temporarily left the workforce deposit more. Additionally, it includes a tax credit for low- and moderate-income investors.
The new markets, or community renewal, legislation would make banks and others eligible for tax credits worth more than 30% of investments made in poor inner-city and rural communities. They would also could get $1 billion of guarantees for low-cost loans funding large job-producing projects, as well as $150 million of matching venture capital for small businesses.