The House GOP Solutions Group for Savings Restoration issued March 24 a blueprint for the upcoming introduction of the Savings Recovery Act, which immediately won support from the American Benefits Council.
The proposal from the Solutions Group, which is led by House Republican leader John Boehner (R-Ohio), provides a Republican alternative to stimulate the economy and provide tax breaks to encourage increased savings for retirement and college, and to make investments now through lower capital gains taxes.
In introducing the proposal, Boehner said that “Recent polling suggests that Americans’ concerns about their savings even trumps concerns about losing their jobs.” Unfortunately, he continued, “Washington Democrats have done nothing to address this savings crisis. In fact, Washington is pursuing policies that are causing Americans’ savings to evaporate more quickly, and some even advocate wiping out 401(k)s entirely and replacing them with government-run accounts. That’s unacceptable and not the solution Americans need.”
The GOP proposal would:
? Raise the contribution and catch-up limits for individuals and families.
? Extend the existing SAVERs Credit to contributions made to 529 college savings accounts, effectively reducing by up to half the cost of a family’s contribution to the plan.
? Double the Social Security earnings limit from $14,160 to $28,320, allowing more older Americans to increase their income without being hit by the Social Security earnings penalty.