Senators Collins, Murray Renew Bipartisan Push to Preserve Critical Savings Option for Working Families
Washington, D.C. - U.S. Senators Susan Collins (R-ME), Chairman of the Senate Aging Committee, and Patty Murray (D-WA), Ranking Member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, today reintroduced the Save Access to a Valuable Investment Needed to Generate Savings (SAVINGS) Act of 2017, legislation that would preserve the Tax Time Savings Bond program. Original co-sponsors of the bill include Senators Angus King (I-ME) and Amy Klobuchar (D-MN).
Since 2010, the Tax Time Savings Bond program has provided taxpayers the option to receive IRS returns in the form of a paper U.S. Savings Bond. This is a critical savings opportunity, particularly for low-income workers without a checking account, a savings account, or other type of banking product.
“U.S. Savings Bonds are an important, low-risk investment option for many individuals,” Senator Collins said. “At a time when many are not saving enough, if at all, preserving Americans’ ability to receive paper bonds through their tax returns will help individuals, particularly those without bank accounts or Internet access, to set aside necessary funds for future expenses.”
“At a time when many workers are finding it harder and harder to get ahead, we should be doing everything we can to provide workers more opportunities to save—not less,” Senator Murray said. “I am proud to join with colleagues on both sides of the aisle to preserve this critical option that will ensure more workers—particularly low-income workers—are able to save and provide greater economic security for their families.”
“For many years, paper U.S. Savings Bonds have given Americans across the country a trusted way to save and responsibly manage their money, which is why it makes no sense for Congress to allow the Tax Time Savings Bond program to expire at the end of this tax season,” Senator King said. “In a rural state like Maine where access to the Internet can be unreliable or people may lack access to traditional banking accounts, this program can be a vital savings opportunity. We should work to preserve that option, not diminish it.”
The SAVINGS Act of 2017 would require the U.S. Treasury Department to continue to provide an option on the IRS tax form for consumers to use some or all of their tax return to purchase a U.S. Savings Bond in paper form, for either themselves or a designated recipient. This option will remain in place until the U.S. Treasury establishes a suitable alternative that serves the unbanked and individuals who lack internet access.
The SAVINGS Act of 2017 is supported by the following organizations: Commonwealth, Financial Security Program – Aspen Institute, Center for Financial Services Innovation (CFSI), Center for Public Policy Priorities, Clarifi, Corporation for Enterprise Development (CFED), EARN, Even, Impact America, Just Harvest, Maryland CASH, Mobility Capital Finance (MoCaFi), MyPath, National League of Cities, Neighborhood Trust Financial Partners, and the Southern Bancorp Community Partners.
Click HERE for a fact sheet on the SAVINGS Act of 2017
