[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 238 Referral Instructions Senate (RIS)]

  2d Session
S. RES. 238

 Expressing the sense of the Senate that any budget or tax legislation 
   should include expanded access to individual retirement accounts.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 29, 1996

 Mr. Helms (for himself, Mr. Roth, Mr. Lott, Mr. D'Amato, Mr. Nickles, 
Mrs. Hutchison, Mr. Faircloth, Mr. Breaux, Mr. Shelby, Mr. Bennett, and 
 Mr. Santorum) submitted the following resolution; which was referred 
 jointly pursuant to the order of August 4, 1977, to the Committees on 
  the Budget and Governmental Affairs, with instructions that if one 
committee reports, the other committee have thirty days to report or be 
                               discharged

_______________________________________________________________________

                               RESOLUTION


 
 Expressing the sense of the Senate that any budget or tax legislation 
   should include expanded access to individual retirement accounts.

Whereas the Congress recognizes that an increased saving rate would be 
        beneficial for the American economy, providing much needed capital for 
        investment which leads to economic growth and increases in jobs and 
        wages;
Whereas the personal saving rate in America averaged between 6 percent and 8 
        percent from 1950 through 1980, but dropped below 5 percent in the late 
        1980's, where it remains today;
Whereas the United States now has the lowest saving rate of all other 
        industrialized nations in the world and this results in deficit 
        financing and foreign borrowing to finance our consumption and 
        investment;
Whereas when the deductibility of contributions to individual retirement 
        accounts (``IRAs'') was significantly curbed in 1986, deductible 
        contributions to IRAs dropped from almost $40,000,000,000 in 1985 to a 
        low of about $7,000,000,000 in 1993;
Whereas millions of people are currently precluded from making fully deductible 
        IRA contributions, and they are relying on Congress to increase the 
        current income limit on individuals eligible to contribute to IRAs and 
        to create a new nondeductible IRA so all Americans can utilize IRAs to 
        save for their futures;
Whereas the time has come to allow spouses working at home to have an equal 
        opportunity to invest in an IRA since out of the 53,000,000 households 
        with married couples, at least 35 percent have only one wage earner in 
        the household, thereby illustrating the need for IRAs for spouses 
        working at home;
Whereas because of the current restrictions on IRAs, only around 8 percent of 
        American workers invest in them;
Whereas unless remedial action is quickly taken to increase the saving rate, 
        millions of Americans will be lacking in sufficient resources to fund 
        their retirement needs;
Whereas 50 years ago 42 workers contributed Social Security taxes for every 
        beneficiary, today there are fewer than 4 workers per beneficiary, and 
        by 2025 the ratio will have dropped to only 2.2 workers per beneficiary;
Whereas if an expanded individual retirement package is included in any budget 
        agreement or appropriate tax measure, it will give millions of Americans 
        the opportunity to use IRA funds to provide for retirement, buy a first 
        home, pay for children's college education, or protect themselves in the 
        event of extended unemployment--all without incurring any penalty; and
Whereas if an expanded individual retirement account package is included in any 
        budget agreement or appropriate tax measure, millions of Americans can 
        immediately begin using IRAs to save for their futures, reducing 
        dependence on government, and millions of unemployed or underemployed 
        Americans can pursue the American Dream: Now, therefore, be it
    Resolved, That it is the sense of the Senate that any budget 
agreement or appropriate tax measure coming before Congress this year 
shall include expanded access to individual retirement accounts so that 
the saving crisis in America can be reversed, new jobs can be created, 
economic growth can be increased, and the American Dream can be 
restored.
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