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Sen. Flake and Rep. Brat introduced the Universal Savings Account Act

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Washington, November 19, 2015 | comments
Last week Senator Jeff Flake, R-Ariz., and Rep. Dave Brat, R-Va., introduced the Universal Savings Account Act of 2015 so that Americans can save money more easily. The Brat-Flake bill, H.R. 4094/S. 2320, will encourage Americans at all income levels to save by enabling adults to put $5,500 per year of post-tax income into an account in which earnings and distributions are free of additional taxes.
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Last week Senator Jeff Flake, R-Ariz., and Rep. Dave Brat, R-Va., introduced the Universal Savings Account Act of 2015 so that Americans can save money more easily. The Brat-Flake bill, H.R. 4094/S. 2320, will encourage Americans at all income levels to save by enabling adults to put $5,500 per year of post-tax income into an account in which earnings and distributions are free of additional taxes.

The current tax code is hard to navigate, is confusing, and discourages savings. People with wealth and know-how can put their hard-earned income into specialized accounts, but those without that expertise face multiple layers of taxation when they attempt to save.

Right now, only 53 percent of adults could cover an emergency expense of $400 without selling an asset or borrowing, and most Americans lack the recommended savings level of three to six months of income. That needs to change.

This bill eliminates the double-taxation average Americans currently face on their savings. As Canada and Britain have shown, these accounts are popular, spur economic growth, and let individuals have the flexibility that life requires. Canada’s Tax-Free Savings Account (TFSA) program has proven so popular that 48 percent of Canadians have an account just six years after its introduction.

"It isn’t easy for working Americans to save and to achieve economic prosperity and independence, but it is vital for a prosperous economy," said Rep. Brat. "I believe this bill will put Americans on the path to the brighter and sustainable economic future we all seek."

This bill is endorsed by the National Taxpayers Union
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