The Group first revealed its proposed blueprint for the legislation in March (see “GOP Congressmen Offer Savings Proposal’).
A statement from the office of U.S. Representative Howard P. “Buck” McKeon (R-California) said the Savings Recovery Act would:
- 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.
More information is available here.