Commenting on the House Savings Recovery Act introduced this week, Rep. Ed Royce (R-Calif.) said, Along with our struggling economy, over the past 16 months, millions of Americans have seen their personal savings and retirement accounts hit hard. Americans should be given every opportunity to help rebuild their savings.
Royce continued: If our economy is going to experience long-term sustainable growth going forward, we have to encourage savings and investment. This is a step toward getting capital back into the financial system and putting our country on the path back to recovery.
Among other things, the Savings Recovery Act would increase contribution and catch-up limits. It would also extend the tax credits that families get for contributing to a 529 plan.
The act would also double the Social Security earnings limit from $14,161 to $28,320, thereby allowing more Americans to increase their income without being hit by the Social Security earnings penalty.
Further, it would suspend the capital gains tax on newly acquired assets for the next two years, in order to provide tax relief to investors and seniors. It would suspend dividend income through 2011 and raise the amount of capital losses allowed against ordinary income to $10,000.