|Oct. 9, 2007, 11:36PM|
Clinton unveils retiree plan, drops proposal on baby fund
By NEDRA PICKLER
WEBSTER CITY, IOWA — Democratic presidential candidate Hillary Rodham Clinton proposed tax cuts of up to $1,000 a year on Tuesday to encourage millions of working-age families to open personal 401(k) retirement accounts.
The New York senator said the program would be paid for through higher estate taxes.
At the same time, Clinton said she has given up another idea for a savings incentive — giving every baby born in the U.S. a $5,000 account to pay for college or a first home.
Instead, she said, her plan for what she called "American Retirement Accounts" will provide "universal access to a generous 401(k) for all Americans."
She outlined a program in which the government would provide a "matching refundable tax credit — dollar for dollar — for the first $1,000 of savings done by every married couple making up to $60,000 a year."
Families with incomes of up to $100,000 would receive a smaller tax break to spur them to contribute to a personal 401(k). Higher income earners who don't have employer-sponsored plans could participate, but they would not receive tax breaks.
At a cost of $20 billion to $25 billion a year, the plan is Clinton's largest domestic proposal other than her plan for universal health insurance.