Public policy in a Trump administration
Robinson, director of Congressional Affairs at T. Rowe Price, examined changes to retirement tax legislation as president-elect Donald Trump and a Republican-led Congress take on leadership later this month.
Robinson detailed Trump’s campaign promises on tax cuts, which include lowering the corporate rate even further, to 15% from 21%; ending taxation of tips, overtime pay, and Social Security benefits; and reversing the cap on state and local deductions.
She expects the cuts to influence the retirement industry, as the Trump administration and Republicans explore ways to raise revenue. This includes a Rothification of all retirement contributions—although this was later renounced by Trump—capping employer deductions for employee benefits, and ending nonqualified deferred compensation (NQDC), among other tactics.
“We expect the retirement system to be impacted by these tax cuts, as they look for revenue raisers,” Robinson said.
Regarding the fiduciary and ESG rule moving forward, Robinson expects both to revert to its form during the first Trump administration, whether that includes changes to the legislation or regulation.
“We expect to see both of these rules to go back to the versions under the Trump administration,” she said. “The question is how, either through legislation or regulation.”
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