Creating a Save-and-Invest Economy at Tax Time

President Obama recently called for a new era in the American economy–an era where Americans save and invest, rather than borrow and spend. Now that the 2008 tax season has come to a close–with over three-quarters of Americans receiving federal refunds averaging more than $2,700–how can families best save and invest their precious funds?

To help more low- and middle-income Americans save, the Obama Administration proposes expanding the Earned-Income Tax Credit (EITC), improving the Saver’s Credit, creating “Automatic IRAs,” and reforming asset limits in public assistance programs. How can we refine and advance these proposals, and what are some other new and promising ideas to consider to encourage even more savings and investment?

Jason Furman, Deputy Director, White House National Economic Council, discussed the Administration’s plan to help taxpayers save and invest at this critical time. Representative Earl Blumenauer and Diane Oakley of Congressman Earl Pomeroy’s office shared their perspective on how best to use the tax time opportunity to help low- and moderate-income Americans save and develop wealth for the long-term.

In addition, the event featured three pioneering organizations helping Americans to save at tax time. David Marzahl of the Center for Economic Progress presented his organization’s work in connecting Volunteer Income Tax Assistance clients to prepaid debit cards, responsible refund anticipation loans, and mainstream banking products. Tim Flacke of the Doorways to Dreams Fund highlighted the unique financial need that US Savings Bonds fill for low- and moderate-income families. And finally, Cathie Mahon of the New York City Office of Financial Empowerment discussed results from the innovative Save NYC matched savings account program which provides matching funds to low-income taxpayers who save funds for 12-months or more in CD-style account.

This conversation demonstrates a key development in the asset building field, no longer are we asking whether low- and moderate-income families can save but how can we best help them to do so.

Participants