The following is a statement from Brian H. Graff, left, CEO and Executive Director of The American Society of Pension Professionals & Actuaries in response to President Obama's latest offer to House Speaker John Boehner in negotiations to avoid the pending fiscal cliff.
"The President's current bid to avoid the fiscal cliff includes a 28 percent cap on the current tax benefit for itemized deductions and exclusions (35 percent for charitable contributions).
This proposal means a small business owner with a marginal tax rate of over 28 percent will pay a surcharge on elective deferrals to a 401(k) plan the year the contributions are made, and then pay tax again on the full amount when the contributions are paid out at retirement. Simply put, this amounts to double taxation.
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