U.S. Rep. Mike Kelly (R-PA) on Sept. 10 introduced the Family Savings Act of 2018 to encourage Americans to save money for their retirements and families, one of three pieces of legislation comprising Republicans’ new Tax Reform 2.0 package.
“I am especially proud to be the lead sponsor of the Family Savings Act to help families of every background prepare for their future,” said
Rep. Kelly, a member of the U.S. House Ways and Means Committee.
“With so many households receiving new bonuses and bigger paychecks thanks to the Tax Cuts and Jobs Act,” Kelly said, “now is the perfect time to make the tax cuts permanent and make sure that Americans have the financial security they need to handle anything that life may throw their way.”
Tax Reform 2.0 would build on the growing economic successes of the Tax Cuts and Jobs Act via three bills that would make permanent the law’s individual and small business tax cuts, ease processes for families and businesses to save for retirement, and spur innovation by growing startup businesses, according to a statement released by the House Ways and Means Committee.
“This is about helping every American enjoy a happy retirement and peace of mind in the years when they deserve it most,” said Rep. Kelly, founder and co-chairman of the bipartisan House Retirement Security Caucus. “Tax Reform 2.0 is the logical next step for our committee to build on the success that our country has been seeing.”
Rep. Kelly’s H.R. 6757 is supported by Ways and Means Committee Chairman Kevin Brady (R-TX) and the other 23 Republican members serving on the committee, including U.S. Reps. Peter Roskam (R-IL), Vern Buchanan (R-FL), Lynn Jenkins (R-KS), Erik Paulsen (R-MN), Diane Black (R-TN), Tom Reed (R-NY), James Renacci (R-OH), Kristi Noem (R-SD), Tom Rice (R-SC), Jackie Walorski (R-IN), Carlos Curbelo (R-FL), Mike Bishop (R-MI), Darin LaHood (R-IL), and Brad Wenstrup (R-OH). The lawmakers are all original cosponsors of H.R. 6757.
“The enactment of the Tax Cuts and Jobs Act nearly nine months ago was a legislative milestone and a historic victory for the American people,” said Kelly. “This new law – the first of its kind in 31 years – has met and surpassed expectations by turbo-charging our economy, boosting businesses of all sizes, and giving hardworking taxpayers at every income level more take-home pay.
“The facts are clear: all in all, tax reform has been an undeniable success story,” he said.
Rep. Kelly is also an original co-sponsor of the other two bills in the tax reform package: the American Innovation Act of 2018, H.R. 6756, sponsored by Rep. Buchanan, and the Protecting Family and Small Business Tax Cuts Act of 2018, H.R. 6760, sponsored by U.S. Rep. Rodney Davis (R-IL). Both bills also have more than 20 original cosponsors.
Rep. Brady also said that the Tax Cuts and Jobs Act has improved the United States economy. “Now it’s time to change the culture in Washington where we only do tax reform once a generation,” he said, referring to the tax package goals that aim to make the law’s provisions permanent.
“This legislation is our commitment to the American worker to ensure our tax code remains the most competitive in the world,” said Rep. Brady. “We are creating financial security.”
Rep. Kelly’s H.R. 6757, for instance, focuses on helping families save more and earlier by making it easier for businesses to provide retirement savings plans that are simpler for their employees to participate in, the committee chairman said.
H.R. 6757 also includes numerous provisions of the bipartisan Retirement Enhancement and Savings Act of 2018, H.R. 5282, which Rep. Kelly introduced on March 14. The bill would modify requirements for tax-favored retirement savings accounts, employer-provided retirement plans, and retirement benefits for federal judges, among other provisions, according to the congressional record summary.
For example, according to a summary of Tax Reform 2.0 provided by the Ways and Means Committee, H.R. 6757 would create a new Universal Savings Account (USA) to offer families a flexible savings tool; would expand 529 education accounts so families could use their savings to reduce student debt, pay for trade apprenticeship fees, or cover homeschooling costs; and would permit families to access their retirement accounts on a penalty-free basis to cover costs associated with the birth or adoption of a child.
H.R. 6757 has been referred for consideration to the U.S. House Education and the Workforce Committee, as well as the Ways and Means Committee. The other two bills in the GOP tax package are being reviewed by Ways and Means Committee members.