Would ‘USAs’ work in the USA?

Posted on Thursday, July 26, 2018 by Gary Hunt

Republicans are considering another round of tax cuts, and an idea at the top of their list is reportedly Universal Savings Accounts, or – fittingly enough – “USAs.”

These accounts, which were considered for last year’s tax reform bill, would allow individuals to save a limited amount of their after-tax income and let the interest accrue tax-free. They money could be withdrawn tax- and penalty-free at any time for any reason.

Such a plan could encourage Americans – who aren’t saving enough of what they earn – to sock away more money. It has done just that in Canada and the UK, but would USAs help here?

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