Americans’ Retirement Savings Boom Thanks to Republican Tax Cuts

Retirement accounts see 65% growth

November 2, 2006

(Washington, D.C.) Speaker of the House J. Dennis Hastert (R-IL) today issued the following statement regarding the wide-range of Americans benefiting from Republican economic policies:

“Americans across economic lines can retire more comfortably through the effects of the 2001 and 2003 tax cuts.  These cuts have put more money in the pockets of hard-working Americans to use toward their retirement saving and investments.  The measures lessened the tax burden on stocks, making these investments a new and attractive option for many more Americans.

“The Republican Congress acted in 2003 to lower taxes on capitol gains and dividends, thereby growing shareholder income to $5.7 trillion from 2003-2006.  Americans with 401(k) accounts are among those who have more money to plan for and fund their retirement. 

“Democrats want you to believe that only the wealthy have benefited from these tax cuts.  In reality, Republican tax cuts have crossed economic lines to benefit all Americans.  Whether it’s in the form of relief for personal incomes, the marriage penalty, the child tax credit, small businesses, hourly wage-earners, or retirement savings, Republicans have acted to give Americans more of THEIR MONEY. 

“If Nancy Pelosi and her Democrat colleagues get control of the House, they will allow the tax cuts to expire, taking more out of your pocket to pay for their liberal agenda.”

Retirement Savings Facts:

The average 401(k) has increased from $61,939 to $102,014 from 2002-2005 a 64.7 percent increase.
(Source for 401(k) info is ICI Page 3. http://www.ici.org/shareholders/ret/per12-01.pdf)

401(k) numbers include contributions plus investment returns. Younger workers have less income in their account so the disparity between average and median is based more on age than income (income rises with age).

As of closing on 11/01/06, $5.741 trillion of new shareholder income (54.9%) has been created since May 20, 2003, the day the tax cut agreement was reached.

Total shareholder wealth is up 9.5 percent this year so we expect these numbers to be even higher in 2006.

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