Completely rewrite the following article in a fresh and original style. Ensure the new content conveys the same sentiment and message as the original. The rewritten article should:
1. Start with a compelling introduction that hooks the reader (do not label this section).
2. Maintain any lists and points as they are, using numbering and bullet points where necessary. Rewrite the explanations and discussions around these points to make them fresh and original. Ensure the lists are formatted correctly with proper numbering or bullet points.
3. Organize the content into clear, logical sections. Subheadings are not mandatory. Each section should have a subheading only if it enhances readability and comprehension.
4. End with a strong conclusion that summarizes the key points and provides a closing thought or call to action (do not label this section).
Make sure the article flows coherently, is engaging, and keeps the reader interested until the end. Reorganize and structure the content efficiently to enhance readability and comprehension. Use varied sentence structures and vocabulary to avoid monotony. Avoid directly copying any sentences or phrases from the original content. Here is the original content:
Presented by:
Will McBride
Chris Edwards
The Tax Foundation is hosting an online discussion with Will McBride and Chris Edwards on universal savings accountstheir track record in Canada and the United Kingdom, and how they could help Americans save more.
According to the Federal Reserve, the portion of Americans with emergency savings to cover at least three months of expenses dropped from 59 percent in 2021 to 54 percent in 2022 and 2023 as pandemic-era surges in saving receded. They are increasingly relying on credit card debt and other forms of debt, or retirement savings, to finance spending.
Current law provides at least 11 different types of tax-advantaged saving vehicles, each with volumes of complicated rules and limitations. For most of these accounts, only a fraction of eligible people actually participate. However, a simple solution exists and is tried and true in Canada and the UK.
Universal savings accounts, or tax-free savings accounts as they are called in Canada, are tax-advantaged savings accounts that allow individuals to deposit their money, invest in stocks and bonds, and withdraw their funds for any reason, without restrictions or penalties. The earnings are treated like a Roth 401(k) or individual retirement account, taxed once when the money is deposited and tax-free when withdrawn. The United Kingdom has a nearly identical savings account, named individual savings accounts.
Our conversation will explore who uses these accounts in Canada and the UK, their experience, and what the experts have found from the data. Drawing on this evidence, we will discuss the possibilities for universal savings accounts in the United States, how they might work, and their status in Congress.
The Tax Foundation just released a new paper modeling universal savings accounts and exploring the research on the current accounts in Canada and the UK.
Tune in on Tuesday, June 25th for an informative conversation on innovative policy from our friends up north and across the pond.
Will McBrideVice President of Federal Tax Policy & Stephen J. Entin Fellow in Economics, Tax Foundation
Chris EdwardsKilts Family Chair in Fiscal Studies, Cato Institute
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