POLITICAL ISSUE #404: INADEQUATE SAVINGS RATE

PRESENT CONDITION: America's savings rate has fallen to one of the lowest of the major industrialized nations. This savings rate is further reduced by claims on future wealth like our national debt and Social Security.

DIRECTION OF IMPROVEMENT: America's net savings rate should be substantially increased.

ISSUE JUSTIFICATION: America's future prosperity will be determined both by the human resources of American citizens and the material resources we have to work with. The savings of past generations created the bountiful infrastructure of America which permits our present level of prosperity. However our present low savings rate is failing in many cases to even maintain our present infrastructure much less improve it. Our own future prosperity and that of our children depends on increasing our savings rate which unfortunately means reducing the fraction of national income we spend on current consumption.

AUTHOR: UWSA SANTA CLARA CO EMAIL:humphrey@aimnet.com

OPTIONS FOR ISSUE # 404: INADEQUATE SAVINGS RATE

REVIEW PUBLIC COMMENTS ON THIS ISSUE

REVIEW CURRENT VOTING RESULTS ON THIS ISSUE

COMMENT ON THIS ISSUE YOURSELF

VOTE ON THIS ISSUE

RETURN TO THIS ISSUE/SOLUTION MENU

CHOOSE ANOTHER CATEGORY 400 ISSUE

BRIEF DESCRIPTION: The income tax shall provide for a limited (e.g. $100 single/$200 joint) exclusion for dividends and interest income.

JUSTIFICATION: A limited exclusion encourages every American to have at least a small amount of invested savings. This provides a small nest egg for emergencies and when used for that purpose, the tax exclusion encourages the citizen to replenish the amount. Hopefully this small savings will become a habit that will lead to a more adequate level of saving.

AUTHOR: UWSA SANTA CLARA CO EMAIL:humphrey@aimnet.com

OPTIONS FOR SOLUTION # 404.1 LIMITED DIVIDEND/INTEREST TAX EXCLUSION

REVIEW PUBLIC COMMENTS ON THIS SOLUTION

REVIEW CURRENT VOTING RESULTS ON THIS SOLUTION

COMMENT ON THIS SOLUTION YOURSELF

VOTE ON THIS SOLUTION

RETURN TO THIS ISSUE/SOLUTION MENU

PROPOSE AN AMENDMENT TO THIS SOLUTION

---

SOLUTION DEFINITION STATEMENT
FOR
SOLUTION # 404.2 REQUIRED RETIREMENT SAVINGS

BRIEF DESCRIPTION: Each citizen shall be required to fund his own individual retirement savings fund. These funds would remain the citizen's property and would not be pooled in any government retirement trust. The following presents one way to impliment this concept. Citizens would be required to save some percentage of their income (e.g. 10%) and deposit these funds in their own personally managed investment account. The government would define a curve of investment vs age that would be expected to produce a minimum level of retirement assets by age 65. Once the citizen's investment account exceed this minimum curve, he/she could withdraw the excess amount annually or leave some or all of the funds in his account.

JUSTIFICATION: Requiring each citizen to save enough during his/her working career to fund a minimal retirement will provide a significant savings flow that can fuel American investment.

AUTHOR: UWSA SANTA CLARA CO EMAIL:humphrey@aimnet.com

OPTIONS FOR SOLUTION # 404.2 REQUIRED RETIREMENT SAVINGS

REVIEW PUBLIC COMMENTS ON THIS SOLUTION

REVIEW CURRENT VOTING RESULTS ON THIS SOLUTION

COMMENT ON THIS SOLUTION YOURSELF

VOTE ON THIS SOLUTION

RETURN TO THIS ISSUE/SOLUTION MENU

PROPOSE AN AMENDMENT TO THIS SOLUTION

---