"Chairman Camp's tax reform proposal would subject all retirement plan contributions to the 10% surtax. The result is double taxation of these contributions — totally ignoring the fact that these contributions are just tax–deferred, not a permanent exclusion, and will be subject to ordinary income tax when they are withdrawn after retirement. Should this proposal become law, a small business owner could pay a 10% surtax on all contributions made to a qualified retirement plan today, then pay tax again at the full ordinary income tax rate when they retire. Penalizing small business owners for contributing to a plan is going to make them think twice about sponsoring a plan at all, and their employees could lose their workplace retirement plan. Double taxation is hardly what we hoped to see in any tax reform proposal," said ASPPA CEO/Executive Director Brian Graff.

"We are also very concerned about the freeze on contribution limits until 2023. The cost of living in retirement is not going to be frozen. On top of the double taxation, this is a real blow to employer-sponsored retirement plans, and to American workers' retirement security."

In a statement released shortly after Camp's announcement on Wednesday, IRI President and CEO Cathy Weatherford said, "Tax incentives for retirement savings have been a powerful tool in helping millions of Americans save and prepare for their retirement years, particularly for middle-income Americans, who would be less likely to save if these incentives were reduced or eliminated."

She continued, "As such, maintaining incentives for retirement savings will be essential to helping Americans attain financial security during their later years. We will continue to communicate the importance of these incentives to policymakers, and look forward to working with Chairman Camp to ensure that retirement savers are protected in any tax reform legislation."

Under Camp's plan, corporations would have a maximum income tax rate of 25 percent, down from 35 percent, while individuals would have a top rate of 25 percent, down from 39.6 percent.

The plan has little chance of becoming law without Democratic support, but it could become a political talking point of great importance as the midterm elections approach in November.