Media Advisory
IPI Policy Report - # 156 Author: Sonia Hoffman on 08/08/2001
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Press Release (07/26/2001)
Media Advisory (08/08/2001)
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Tax System to Blame for Near- Zero Saving Rate
FOR IMMEDIATE RELEASE
Thursday, August 9, 2001
Contact: Sonia Hoffman, (972) 874.5139 or shoffman@ipi.org
WHAT:
- The personal saving rate plunged to nearly zero in 2000. That’s frightening, especially considering the future insolvency of Social Security and the fact that over 70 million Baby Boomers are quickly approaching retirement.
WHY:
- In one word: taxes. Biases against saving lurk in the structures of the progressive income tax, the corporate profits tax, the estate and gift tax, Social Security, and the Earned Income Tax Credit.
The level of income could be at least 10 to 15 percent higher than it is today, if current tax biases did not exist. Families could receive an average of $4,000 to $6,000 more per year in income, causing the saving rate to skyrocket.
WHO:
- Stephen Entin
President of the Institute for Research on the Economics of Taxation (IRET) and
Author of a new report “Fixing the Saving Problem,” the first study in the Institute for Policy Innovation’s “Road Map to Tax Reform” project.
WHEN:
- Available immediately to TV, radio and print mediums.
Contact: Sonia Hoffman by calling (972) 984-5139 during the day or (972) 979-4766 during the evening,
or by emailing shoffman@ipi.org
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