Proposed Changes to Saver’s Credit

President Obama has proposed changes to the saver’s credit as part of his policies to help the middle class. The saver’s credit would be expanded by matching 50% of the first $1,000 of contributions by families earning up to $65,000 and providing a partial credit to families earning up to $85,000. Also the tax credit would be refundable meaning that even if a taxpayer had no income tax liability they could receive the saver’s credit as a refund.


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2 responses to “Proposed Changes to Saver’s Credit”

  1. This could be a good deal for those who qualify just as it is now. Hopefully more people will become engaged in their financial future.
    That said simplifying the tax code is my fist choice.

  2. Ray Joiner

    I agree with Daddy Paul (Feb. 13), but I would go farther. In the broader scheme of things, the real way to help the middle class would be to institute genuine financial reform to curb the excessive power of big banks, big pharma, big insurance, and so forth. Tragically Obama has not had the stomach to do this, and in any case he would be swimming upstream against the bought-and-paid-for Congress (both parties). So what can we do except just complain? We can move our banking business to local banks and/or credit unions. For good tips on how to do this safely, see http://www.rebelcapitalist.com under “Personal Finance” (“Moving Your Money”).