NU Online News Service, Jan. 28, 2004, 11:28 a.m. EST, Washington – Congress should make federal tax laws friendlier to retirement savings.[@@]
Sen. Larry Craig, R-Idaho, chairman of the Senate Special Committee on Aging, made that plea at a recent committee hearing on retirement savings.
“A recent report form the Department of Commerce shows that the personal saving rate has declined from 7.7% in 1992 to 2.3% in 2002,” Craig said. “At a time when savings should be going up, we see a dramatic decline.”
Craig said he will work to remedy the situation.
“As an advocate for change, I encourage younger families to begin saving more now, and as a legislator, I recommit myself to working to reform the nation’s tax laws to encourage more savings,” he said.
John Goodman, president of the National Center for Policy Analysis, Washington, agreed on the importance of changing federal tax laws.
“The current tax law has a bias against saving and investment,” he said in testimony before the committee. “That bias retards capital formation and reduces productivity, employment and wages.”