FOR RELEASE WEEK OF November 6, 2006
Contact: Kyle Steward...662-844-5437

REPORT FROM CONGRESS
By Congressman Roger F. Wicker

WICKER: RECORD-SETTING STOCK MARKET BENEFITS AMERICAN FAMILIES

With more than half of all households now investing in the stock market, the dramatic surge on Wall Street is boosting the personal wealth and retirement prospects of millions of families. The market recently closed above the 12,000 mark for the first time in history, providing yet another signal that the U. S. economy is strong and producing benefits for American workers.

Wall Street has experienced a dramatic comeback since the dark days following September 11, 2001. The gains reflect the steady growth of our economy, spurred by action in Congress to provide tax relief and enact pro-growth initiatives. That is good news for Americans in all walks of life who own stocks individually or participate through holdings in their 401(k) plans or individual retirement accounts.

FAMILIES OWN 82% OF MARKET

When large stock holdings of pension plans are included, American families own 82 percent of the stock market. They are benefiting from this dramatic rise in stocks through increased investments, additional revenues for their children's college funds, and more retirement savings.

The growing stock market also aids businesses by providing lower capital and investment costs that enable companies to expand facilities, buy new equipment, and add jobs. The market has been a strong factor in stimulating a 5.7 percent growth in business investment activities over the past year.

PENSION REFORM A PLUS

The newly-enacted sweeping pension reform legislation is also helping Americans manage their investments more effectively and providing new opportunities to save and invest. The Pension Protection Act gives workers access to professional investment advisors and makes more information available about workers' pension programs than ever before. The Act brings transparency to the operation of company pension plans and allows workers to make more informed decisions about their retirement funds.

The law also makes permanent several tax provisions designed to encourage workers to set aside more money for retirement. Congress increased contribution limits for pensions and individual retirement accounts (IRAs) in 2001, but the changes were set to expire in 2010. The legislation also indexed the income limits for traditional, spousal, and Roth IRAs to prevent the benefits from being eroded because of inflation. It also permanently extended the college savings plans that are helping more Americans save for their children's education.

MARKET FUELING JOBS, PROSPERITY

Virtually all of the leading economic indicators continue to show an upward trend and reflect 20 straight months of business expansion, job creation, the lowest unemployment rate in years, and the lowest gasoline prices in more than 10 months. The performance of the stock market adds to that positive picture, closing at record highs 13 times during an 18 day span in October. It is helping boost opportunities and offering greater economic security for millions of American families.