How would Sensible Tax Reform affect savings in the United States?
America, the richest country the world has ever known, has the lowest savings rate of any developed country in the world. In recent years, our average savings rate has been 0%–and even negative. That is a tragic and dangerous condition. As a result, America borrows abroad more than half a trillion dollars every year. Those are very unhealthy, even dangerous, trends. We must both increase our savings and reduce our borrowing, especially our foreign borrowing. STR will greatly increase the ability of Americans, especially the middle and high-income groups, to save and invest for our futures. With uncertainties about Social Security and Medicare and worry about the safety of retirement plans, we must do a much better job of saving and providing for our own futures. Under STR, the real income of most Americans will greatly increase. We will have the opportunity to save much more for our futures.
