Sen. James Inhofe said Tuesday that Republicans are considering allowing people to pull from their retirement accounts for a one-time flat rate as part of the tax plan.
“It’s a flat fee of 10 percent,” Mr. Inhofe, Oklahoma Republican, explained on “The Hugh Hewitt Show.”
“They’d paid ordinary income tax on it, and this waives that ordinary income tax,” he said.
The proposal would allow people a one-time withdrawal, up to 25 percent, from their retirement savings account that would be taxed at 10 percent federally plus whatever state taxes are typically paid. Usually, people pay an income tax on their retirement savings when they begin withdrawing, but this would waive that tax later on.
“I can’t think of one thing out there that’s going to have an immediate thrust of generation of revenue in the first few weeks, or actually days,” Mr. Inhofe said.
The goal would be to generate more revenue immediately that would help balance out the loss of revenue from the tax cuts in the GOP plan. The idea was originally proposed by host Hugh Hewitt, which Mr. Inhofe said he heard on the program and put forward to his Republican colleagues.
Mr. Inhofe said the idea is being considered in conference.