[Congressional Record Volume 150, Number 49 (Thursday, April 8, 2004)]
[Senate]
[Pages S4026-S4027]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. EDWARDS:
  S. 2303. A bill to help American families save, invest, and build a 
better future, and for other purposes; to the Committee on Finance.
  Mr. EDWARDS. Mr. President, I rise to introduce the Better Future for 
American Families Act. Today's legislation will strengthen progressive 
tax credits to help middle-class families save, invest, and get ahead.
  For more than 200 years, our country has been propelled by this 
single, powerful idea: All Americans should have the opportunity to 
rise as far as their hard work and God-given potential can take them. 
In the last generation, however, the American Dream of building 
something better has been replaced with the hope of just getting by.
  Due to the rising costs of housing, health care, and other 
necessities, many families are no longer saving for the future. In 
fact, they need to borrow to get through the present. Personal 
bankruptcies reached an all-time high of 1.6 million a year in 2002. 
Almost one in five households approaching retirement can expect to 
retire in poverty, and this rate is even higher for African American 
and Hispanic households. The middle-class--the foundation of this 
country--is sinking.
  If we want to create new wealth in this country, we should start by 
rewarding the work and responsibility of America's families. What's 
right for our economy, our democracy, and our society is consistent 
with our values as well: Every American should have the chance to be an 
owner--to buy a home, save for college, invest in America, or put money 
aside for a secure retirement.
  In current law, there is a Saver's Credit that matches retirement 
savings of low-income families up to dollar-for-dollar. The credit has 
been a success, but it does suffer from some limitations.
  First, the Saver's Credit will expire in 2006. The Republican budget 
plan fails to extend it, even as it extends other tax cuts enacted in 
2001. My legislation would make it permanent.
  Second, the credit phases out rapidly, providing only a small benefit 
to many middle-income families and creating high marginal tax rates for 
millions of savers. My legislation would expand benefits for families 
earning less than $50,000.
  Finally, although 57 million taxpayers are eligible for the maximum 
credit on paper, 80 percent of them cannot actually benefit from it 
because they lack income tax liability. These are families that need 
help as much as anyone, and my legislation would make them eligible for 
the credit.
  This legislation would make a real difference for American families. 
A family that saves the maximum under this plan every year from age 25 
to retirement will have a nest egg of $200,000 on top of any other 
savings, pensions, and Social Security.
  Here in Congress, it is our responsibility to make sure that families 
working for a living have the tools they need to move forward. My 
legislation is not about creating another government program to protect 
families; it is about helping families help themselves.
  If we help families save, we can unleash a new era of possibilities 
with a stronger economy because we're saving and investing more; with 
families at ease because they have financial security; and with our 
children prospering because they have a strong foundation on which to 
build. I urge all of my colleagues to join me in supporting this 
effort.
  I ask unanimous consent that the text of the legislation be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2393

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Better Future for American 
     Families Act''.

     SEC. 2. MODIFICATIONS TO SAVER'S CREDIT.

       (a) Saver's Credit.--Section 25B of the Internal Revenue 
     Code of 1986 is amended by striking the heading thereof and 
     inserting ``THE SAVER'S CREDIT.''.
       (b) Modifications to Applicable Percentage.--Subsection (b) 
     of section 25B of the Internal Revenue Code of 1986 is 
     amended to read as follows:
       ``(b) Applicable Percentage.--For purposes of this 
     section--
       ``(1) In general.--The applicable percentage is 50 percent 
     reduced (but not below zero) by 1 percentage point for each 
     phaseout amount by which the taxpayer's adjusted gross income 
     for the taxable year exceeds the threshold amount.
       ``(2) Phaseout amount; threshold amount.--The phaseout 
     amount and the threshold amount shall be determined as 
     follows:

 
  In the case of an individual   The phaseout amount     The threshold
            filing:                      is:              amount is:
 
A joint return.................          $400               $30,000
A head of household return.....          $300               $22,500
Any other return...............          $200              $15,000.''.
 


       (c) Repeal of Termination.--Section 25B of the Internal 
     Revenue Code of 1986 is amended by striking subsection (h).
       (d) Credit refundable.--
       (1) In general.--Section 25B of the Internal Revenue Code 
     of 1986, as amended by this Act, is hereby moved to subpart C 
     of part IV of subchapter A of chapter 1 of such Code 
     (relating to refundable credits) and inserted after section 
     35.
       (2) Conforming amendments.--
       (A) Section 24(b)(3)(B) of the Internal Revenue Code of 
     1986 is amended by striking ``and 25B''.
       (B) Section 25(e)(1)(C) of such Code is amended by striking 
     ``, 25B''.
       (C) Section 26(a)(1) of such Code is amended by striking 
     ``24, and 25B'' and inserting ``and 24''.
       (D) Section 25B of such Code, as moved by paragraph (1), is 
     redesignated as section 36.
       (E) Section 904(h) of such Code is amended by striking 
     ``24, and 25B'' and inserting `` and 24''.
       (F) Section 1400C of such Code is amended by striking ``24, 
     and 25B'' and inserting `` and 24''.
       (G) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 of such

[[Page S4027]]

     Code is amended by striking the item relating to section 36 
     and inserting the following:

``Sec. 36. The Saver's Credit.
``Sec. 37. Overpayments of tax.''.

       (H) The table of sections for subpart A of part IV of such 
     Code is amended by striking the item relating to section 25B.
       (I) Section 1324 of title 31, United States Code, is 
     amended by inserting ``, or enacted by the Better Future for 
     American Families Act'' before the period at the end.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2003.
                                 ______