The Savings Recovery Act has been introduced by the House GOP’s Solutions Group for Savings Restoration – a group of Republican Congressmen led by U.S. House of Representatives Minority Leader John Boehner. According to an announcement , the proposal is designed to help Americans rebuild their retirement, college, and personal savings.
The blueprint calls for:
- Rebuilding Americans’ retirement savings by raising the contribution and catch-up limits for individuals and families.
- Restoring college savings by extending 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.
- Increasing retirement income by doubling the Social Security earnings limit from $14,160 to $28,320 and allowing more Americans to increase their income without being hit by the Social Security earnings penalty.
- Providing tax relief for investors and seniors by immediately suspending the capital gains tax on newly acquired assets for the next two years, raising and indexing to inflation the amount of capital losses allowed against ordinary income to $10,000, and suspending taxes on dividend income through 2011.
- Stabilizing worker pensions and helping employers invest in the future by temporarily providing an increased glide path for recognizing losses and two additional years to resolve pension funding shortfalls.
- Preserving employee-controlled 401(k)s by blocking efforts to wipe out 401(k)s entirely and replace them with government-run accounts (see The Plot to Kill the 401(k) .
And, based on comments from the American Benefits Council, the bill also includes a three year extension of the current suspension of the required minimum distribution rules.
"Recent polling suggests that Americans' concerns about their savings even trumps concerns about losing their jobs. Unfortunately, Washington Democrats have done nothing to address this savings crisis," noted House Minority Leader and Congressman John Boehner (D-Ohio) in an announcement. "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 at a time when they want to rebuild their retirement, college, and personal savings."
In a statement the American Benefits Council said applauded the upcoming introduction of the Savings Recovery Act. "The Council believes that bold initiatives like this are critically needed to address the dire effects that the economic downturn has had on the retirement security of millions of Americans," said American Benefits Council President James A. Klein upon House of Representatives Minority Leader John Boehner's (R-OH) preview of the bill.
The House GOP's Solutions Group for Savings Restoration includes:
Rep. Howard P. "Buck" McKeon (R-CA), Rep. John Kline (R-MN), Rep. Dave Camp (R-MI), Rep. Pat Tiberi (R-OH), Rep. Sam Johnson (R-TX), Rep. Ed Royce (R-CA), Rep. Michele Bachmann (R-MN), Rep. Lynn Jenkins (R-KS), Rep. Erik Paulsen (R-MN), Rep. Dean Heller (R-NV), Rep. Bob Latta (R-OH), and Rep. Brett Guthrie (R-KY).
More information on the House GOP's solutions to restore Americans savings is available at http://gopleader.gov/savings/