Idea of the Day: Expand and Simplify the Saver's Credit

Expand and simplify the Saver’s Credit to encourage saving for education, homeownership, and retirement. For many families, saving for purposes such as education, a home, or a small business is key to making economic progress. We propose that the federal “Saver’s Credit” be reformed to make it fully refundable. This Credit should also be broadened to apply to other appropriate savings vehicles intended to foster asset accumulation, with consideration given to including individual development accounts, children’s saving accounts, and college savings plans.

For more on the Center's policies to fight poverty, please see:

• From Poverty to Prosperity: A National Strategy to Cut Poverty in Half by the Center for American Progress Task Force on Poverty