A proposal for boosting saving among low income workers

Rep. Robert Menendez of New Jersey has an idea that he thinks is the ticket to encouraging saving and investment among low-income workers: His proposed bill would match dollar-for-dollar (up to $500) any money that Earned Income Tax Credit eligible workers put into eligible savings accounts like retirement accounts, educational savings accounts, or even Treasury bills. The bonus would be delivered through the normal tax filing process. Obviously, the cost of the bill is unknown since it would depend on how much workers defer to savings.

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One Response to “A proposal for boosting saving among low income workers”

  1. Stella Says:

    We already have this in Australia. It’s called the superannuation co-contribution. The trouble is that low income workers have real difficulty coming up with a lump sum payment for their super for the government to match.

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