If we compare two Americans from different segments of the work force, we quickly see the discrepancy. Mary is a mom who runs a home-based business so she can be with her children. Mary should have the same opportunity as Pete. There would be an added benefit to raising IRA contribution limits. The savings rate in America has been in negative territory since September 1998, and IRAs encourage savings.
Savings are the seeds for American economic growth and prosperity.
A lack of savings limits business capital and creates an environment for higher interest rates, thereby stifling expansion. The IRA Fairness Act is one vehicle to encourage savings. Mary may not think about the American savings rate very often. But she does think about paying taxes every April and thinks about her future with every birthday that passes. To provide tax relief now and help her prepare for the future, the IRA Fairness Act is tailor-made for Mary and millions of other working Americans.