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Jenkins Works With House GOP to Propose Solutions to Help Americans Rebuild Their Savings

WASHINGTON – Congresswoman Lynn Jenkins worked with the House GOP Savings Restoration Solutions Group to craft a proposal to help Americans rebuild their personal, retirement and college savings’ accounts. Minority Leader John Boehner (R-OH) convened the group to address the growing concern among the American people about losses to personal savings.

“At a time when folks are worried about losing their jobs and struggling to make ends meet, they should not also have to worry about losing any more of the money they’ve worked so hard to save,” Jenkins said. “I am proud to work with the Solutions Group for Savings Restoration on a plan to help the American people restore their personal, college and retirement savings.”

The GOP Savings Restoration Solutions Group has developed a plan to help Americans begin to rebuild their lost savings. The plan offers flexibility to allow individuals and families to save and eliminates penalties in federal law that would make it harder for them to rebuild their lost savings. The plan will be introduced as the Savings Recovery Act.

The Savings Recovery Act will help American’s rebuilt their savings by:

•    Rebuilding Americans’ retirement savings by raising the contribution and catch-up limits for individuals and families. 
•    Restoring 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. 
•    Increasing 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.
•    Providing tax relief for investors and seniors by immediately suspending the capital gains tax on newly acquired assets for the next two years, raising and indexing to inflation the amount of capital losses allowed against ordinary income to $10,000, and suspending taxes on dividend income through 2011.
•    Stabilizing 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.
•    Preserving employee-controlled 401(k)s by blocking efforts to wipe out 401(k)s entirely and replace them with government-run accounts. 

“As we continue to address the many challenges facing the nation right now, it is imperative that folks are able to save and plan for the future,” Jenkins said. “The proposal offered in the Savings Recovery Act will empower workers, families and retirees to be able to save without an impossible maze of federal rules and bureaucracy standing in their way.”

For more information about the Savings Recovery Act, please Click Here.

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