| Home > 106th Congressional Bills > S. 1026 (is) To amend title XVIII of the Social Security Act to prevent sudden disruption of medicare beneficiary enrollment in Medicare+Choice plans. [Introduced in Senate] ...
S. 1026 (is) To amend title XVIII of the Social Security Act to prevent sudden disruption of medicare beneficiary enrollment in Medicare+Choice plans. [Introduced in Senate] ...
107th CONGRESS 1st Session S. 1025 To provide for savings for working families. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES June 13, 2001 Mr. Lieberman introduced the following bill; which was read twice and referred to the Committee on Finance _______________________________________________________________________ A BILL To provide for savings for working families. 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 ``Savings for Working Families Act of 2001''. SEC. 2. FINDINGS AND PURPOSES. (a) Findings.--Congress makes the following findings: (1) For the vast majority of households the pathway to the economic mainstream and financial security is not through spending and consumption, but through saving, investing, and the accumulation of assets. Assets promote economic household stability, decrease economic strain on households, promote educational attainment, decrease marital dissolution, decrease the risk of intergenerational poverty transmission, increase health and satisfaction among adults, increase property values, decrease residential mobility, increase property maintenance, and increase local civic involvement. (2) One-third of all Americans have no assets available for investment and another 20 percent have only negligible assets. Assets are distributed far more unevenly than income. Whereas the top 20 percent of American households earn over 43 percent of all income, such households hold over 68 percent of net worth and almost 87 percent of net financial assets. Moreover, asset poverty and wealth gaps are even higher among minority households by a ratio of more than 11 to 1. Up to 20 percent of all households are unbanked and do not have access to the basic financial tools that make asset accumulation possible. (3) Public policy has contributed to large asset gaps in the United States. Traditional public assistance programs based on income and consumption have rarely been successful in supporting the transition to economic self-sufficiency. Tax policy, through $288,000,000,000 in annual tax incentives, has helped lay the foundation for the great American middle class, but only for some citizens. Fully 90 percent of such current tax benefits accrue to households earning more than $50,000 per year, roughly half of all American households. Lacking an income tax liability, low-income working families cannot take advantage of asset development incentives. Moreover, low-income families seeking public assistance must first spend down their assets and face severe asset limits once on assistance. (4) Individual Development Accounts, or IDAs, have proven to be successful in helping low-income working families save and accumulate assets. In one national demonstration project, 2,378 low-income families saved a total of $834,442 in one year which generated another $1,644,510 in private matching funds. Thus far, IDA savings have been used to purchase long-term, high-return assets, including homes, post-secondary education and training, and small businesses. Presently, about 10,000 IDAs are in existence in the United States, held by a very small fraction of the at least 70 million Americans who are asset poor. (5) Therefore, the Federal Government should support, through the tax code, a significant expansion of Individual Development Accounts so that millions of low-income working families across the country can save, accumulate assets, and move their lives forward, and thus make positive contributions to the economic and social well-being of the United States, as well as to its future. (b) Purposes.--The purposes of this Act are to provide for the establishment of individual development account programs that will-- (1) provide individuals and families with limited means an opportunity to accumulate assets and to enter the financial mainstream; (2) promote education, homeownership, and the development of small businesses; (3) stabilize families and build communities; and (4) support continued United States economic expansion. SEC. 3. DEFINITIONS. As used in this Act: (1) Eligible individual.-- (A) In general.--The term ``eligible individual'' means an individual who-- (i) has attained the age of 18 years but not the age of 61; (ii) is a citizen or legal resident of the United States; (iii) is not a student (as defined in section 151(c)(4)); and (iv) is a taxpayer the adjusted gross income of whom for the preceding taxable year does not exceed-- (I) $20,000, in the case of a taxpayer described in section 1(c) or 1(d) of the Internal Revenue Code of 1986; (II) $25,000, in the case of a taxpayer described in section 1(b) of such Code; and (III) $40,000, in the case of a taxpayer described in section 1(a) of such Code. (B) Inflation adjustment.-- (i) In general.--In the case of any taxable year beginning after 2002, each dollar amount referred to in subparagraph (A)(iv) shall be increased by an amount equal to-- (I) such dollar amount, multiplied by (II) the cost-of-living adjustment determined under section (1)(f)(3) of the Internal Revenue Code of 1986 for the calendar year in which the taxable year begins, by substituting ``2001'' for ``1992''. (ii) Rounding.--If any amount as adjusted under clause (i) is not a multiple of $50, such amount shall be rounded to the nearest multiple of $50. (2) Individual development account.--The term ``Individual Development Account'' means an account established for an eligible individual as part of a qualified individual development account program, but only if the written governing instrument creating the account meets the following requirements: (A) The sole owner of the account is the individual for whom the account was established. (B) No contribution will be accepted unless it is in cash. (C) The holder of the account is a qualified financial institution. (D) The assets of the account will not be commingled with other property except in a common trust fund or common investment fund. (E) Except as provided in section 7(b), any amount in the account may be paid out only for the purpose of paying the qualified expenses of the account owner. (3) Parallel account.--The term ``parallel account'' means a separate, parallel individual or pooled account for all matching funds and earnings dedicated to an Individual Development Account owner as part of a qualified individual development account program, the sole owner of which is a qualified financial institution, a qualified nonprofit organization, or an Indian tribe. (4) Qualified financial institution.-- (A) In general.--The term ``qualified financial institution'' means any person authorized to be a trustee of any individual retirement account under section 408(a)(2) of the Internal Revenue Code of 1986. (B) Rule of construction.--Nothing in this paragraph shall be construed as preventing a person described in subparagraph (A) from collaborating with 1 or more contractual affiliates, qualified nonprofit organizations, or Indian tribes to carry out an individual development account program established under section 4. (5) Qualified nonprofit organization.--The term ``qualified nonprofit organization'' means-- (A) any organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code; (B) any community development financial institution certified by the Community Development Financial Institution Fund; or (C) any credit union chartered under Federal or State law. (6) Indian tribe.--The term ``Indian tribe'' means any Indian tribe as defined in section 4(12) of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103(12), and includes any tribal subsidiary, subdivision, or other wholly owned tribal entity. (7) Qualified individual development account program.--The term ``qualified individual development account program'' means a program established under section 4 under which-- (A) Individual Development Accounts and parallel accounts are held by a qualified financial institution; and (B) additional activities determined by the Secretary as necessary to responsibly develop and administer accounts, including recruiting, providing financial education and other training to account owners, and regular program monitoring, are carried out by the qualified financial institution, a qualified nonprofit organization, or an Indian tribe. (8) Qualified expense distribution.-- (A) In general.--The term ``qualified expense distribution'' means any amount paid (including through electronic payments) or distributed out of an Individual Development Account and a parallel account established for an eligible individual if such amount-- (i) is used exclusively to pay the qualified expenses of the Individual Development Account owner or such owner's spouse or dependents, as approved by the qualified financial institution, qualified nonprofit organization, or Indian tribe; (ii) is paid by the qualified financial institution, qualified nonprofit organization, or Indian tribe-- (I) except as otherwise provided in this clause, directly to the unrelated third party to whom the amount is due; (II) in the case of distributions for working capital under a qualified business plan (as defined in subparagraph (B)(iv)(IV)), directly to the account owner; (III) in the case of any qualified rollover, directly to another Individual Development Account and parallel account; or (IV) in the case of a qualified final distribution, directly to the spouse, dependent, or other named beneficiary of the deceased account owner; and (iii) is paid after the account owner has completed a financial education course as required under section 5(b). (B) Qualified expenses.-- (i) In general.--The term ``qualified expenses'' means any of the following: (I) Qualified higher education expenses. (II) Qualified first-time homebuyer costs. (III) Qualified business capitalization or expansion costs. (IV) Qualified rollovers. (V) Qualified final distribution. (ii) Qualified higher education expenses.-- (I) In general.--The term ``qualified higher education expenses'' has the meaning given such term by section 72(t)(7) of the Internal Revenue Code of 1986, determined by treating postsecondary vocational educational schools as eligible educational institutions. (II) Postsecondary vocational education school.--The term ``postsecondary vocational educational school'' means an area vocational education school (as defined in subparagraph (C) or (D) of section 521(4) of the Carl D. Perkins Vocational and Applied Technology Education Act (20 U.S.C. 2471(4))) which is in any State (as defined in section 521(33) of such Act), as such sections are in effect on the date of the enactment of this Act. (III) Coordination with other benefits.--The amount of qualified higher education expenses for any taxable year shall be reduced as provided in section 25A(g)(2) of the Internal Revenue Code of 1986 and may not be taken into account for purposes of determining qualified higher education expenses under section 135, 529, or 530 of such Code. (iii) Qualified first-time homebuyer costs.--The term ``qualified first-time homebuyer costs'' means qualified acquisition costs (as defined in section 72(t)(8) of such Code without regard to subparagraph (B) thereof) with respect to a principal residence (within the meaning of section 121 of such Code) for a qualified first-time homebuyer (as defined in section 72(t)(8) of such Code). (iv) Qualified business capitalization or expansion costs.-- (I) In general.--The term
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