Congresswoman Jenkins, member of the House Republican's Savings Solutions Group, released the following statement after joining with members of the group to introduce the Savings Recovery Act. The legislation will help Americans build their retirement, college and personal savings.
"Folks across the nation are worried about paying their mortgages, keeping their jobs, and feeding their families. They should not also have to worry about losing more of the money they've saved. Unfortunately, not only have savings accounts been severely hit by the economic crisis, but the strict contribution limits and confusing tax regulations discourage many folks from saving at all. This legislation will help workers, seniors and students and their families rebuild their savings and will help achieve long-term sustainable economic growth."
NOTE: The Savings Recovery Act will:
Make it easier for Americans to save more for their retirement by increasing the contribution and catch-up limits for individuals and families.
Restore 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.
Increase 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.
Provide tax relief for investors and seniors by immediately suspending the capital gains tax on newly acquired assets for the next two years, raise and index to inflation the amount of capital losses allowed against ordinary income to $10,000, and suspend taxes on dividend income through 2011.
Stabilize 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.
Preserve employee-controlled 401(k)s by blocking efforts to wipe out 401(k)s entirely and replace them with government-run accounts.