The Serrano Report, Vol. X, #20

Statement

Serrano Introduces Bill to Encourage Savings

On Thursday, Congressman Serrano, along with 20 other members of Congress, introduced H.R. 2917, the "Financial Security Credit Act of 2013," a bill to encourage a higher household savings rate by encouraging low- and moderate-income earners to increase their savings during tax time.

"We know that many American households are unprepared to meet short-term and long-term financial needs, and many more feel as though they cannot save for their long term goals," said Serrano. "This legislation will address these problems by offering an incentive for taxpayers from low- and moderate- income brackets to save their tax refunds by making deposits into any of a number of savings options. If the taxpayer contributes to an eligible savings product and maintains the savings for eight months, they will become eligible for a refundable tax credit of up to $500 directly deposited into their account. It has been proven to work in New York City, and I know that it can work nationally."

More than 43% of American households lack the savings to cover basic living expenses for three months if a layoff or other emergency causes a loss of their income. Without such a safety net, during financial emergencies many families are forced to rely on bad options such as expensive credit cards and exploitative payday loans.

Under the legislation, if an individual is unbanked or does not have an eligible savings option, then they are provided with the opportunity to establish an account on their tax form. Individuals can contribute to any of a number of savings options, including: basic savings accounts, 529 College Savings Accounts, Coverdell Education Savings Accounts, qualified retirement plans, certificates of deposit, and savings bonds.

The legislation builds on the successful SaveUSA program model, which was initiated in New York City, and has expanded to San Antonio, Tulsa, and Newark, NJ through the Social Innovation Fund. These programs show that tax-filers, despite low incomes, can and will save if they have the right incentive at the right moment. Despite having average incomes of less than $18,000, program participants in New York City were able to save an average of about $550. In New York City, about 76 percent of savers held their balance for the full year, and nearly 47 percent returned to save the following year.

"Establishing and maintaining savings is essential to economic mobility and financial stability," concluded Congressman Serrano. "This legislation comes as a result of the many years of work that New York City, the New America Foundation and the Corporation for Enterprise Development have put towards this cause. They have shown that this policy helps low- and moderate- income families to safeguard themselves in case of emergency, and helps them to start building longer term savings for the future. The financial future can be a lot brighter if we help families build a safety net for themselves."

The bill is being supported by numerous organizations, including the National Community Tax Coalition, the Corporation for Enterprise Development (CFED), the Doorways to Dream Fund, and the Asset Building Program at the New America Foundation. Serrano worked with the New York City Department of Consumer Affairs to develop the legislation.

Serrano Votes to Limit NSA Spying

Last week, during consideration of the Department of Defense Appropriations bill, Congressmen Amash and Conyers offered an amendment to restrict mass NSA collection of phone metadata. The secret program recently came to light after leaks by Edward Snowden exposed the mass surveillance of ordinary Americans. Congressman Serrano joined 204 of his colleagues in a bipartisan group to support the amendment. However, the amendment to limit the NSA's power failed by a vote of 205-217.

"I was proud to vote for this bipartisan amendment to curtail the NSA's collection of data on regular Americans citizens," said Serrano after the vote. "Even though the amendment failed, I believe we sent a very strong message to the NSA and Administration that we are deeply uncomfortable with this program and that it must be changed. Without proper Congressional oversight, there is no way to know if this program is justified or even constitutional. 'Just trust us' is not enough in our system of government. I look forward to continuing to work to get this program under Congressional oversight--or end it, if it cannot be done within our normal system."

Following the vote on the amendment Serrano voted against the underlying bill, which would fund the Defense Department for the coming fiscal year. Despite his opposition and the failure of the amendment, the bill passed easily with a vote of 315-109. The bill will now move to the Senate for its consideration.

The Bronx

Serrano Urges Americans to Learn about Obamacare

Congressman Serrano spent time this week reminding Bronx families that the Affordable Care Act, or Obamacare, will begin to enroll eligible people this fall and they should learn about the new options that will be available to them.

"Coming in October, the Health Insurance Marketplace will open up, which will help you get coverage that meets your needs and fits your budget," said Serrano. "When you use the Health Insurance Marketplace, you'll fill out an application and find out if you can get lower costs on your monthly premiums or if you and your family qualify for free or low-cost coverage through New York State's Medicaid or Children's Health Insurance Program."

Open enrollment starts October 1, 2013. Plans and prices will be available then. Coverage starts as soon as January 1, 2014.

"Now is the time to learn more about the new healthcare options," added Serrano. "Go to www.healthcare.gov or call 1-800-318-2596. We all are going to see real benefits from the new health care options. Don't delay in learning more."

Serrano Joins Striking Fast-Food Workers

On Monday, Congressman Serrano went out to support McDonald's workers who were staging a one-day strike to help organize themselves and to call for higher wages. "McDonald's and other employers must realize that they need to pay a living wage to their workers," said Serrano. "This is one of the most expensive cities in the world and workers' wages need to reflect this reality. I am proud to be out here with these workers who are taking a stand, coming together, and actively working to improve their situation."

Serranos Participate in Dominican Day Parade

Last Sunday, Congressman José E. Serrano and State Senator José M. Serrano marched in the Bronx Dominican Day Parade. "It is always wonderful to get out and participate in the parade," said Congressman Serrano after the event. "It is a great opportunity to meet people and it is great to see so many people coming out to celebrate the contributions of Dominican-Americans to our community in the Bronx."

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