Cliff Stearns: “I propose we also provide tax relief for interest earned from savings in bank accounts. I have introduced the Simple…”

“I propose we also provide tax relief for interest earned from savings in bank accounts. I have introduced the Simple Savings Tax Relief Act, H.R. 1163, which would help all savers, including those in lower-income levels who do not earn corporate dividends. Like dividend recipients, bank and credit union customers report interest as income to the IRS, increasing their tax burden. Let us not punish those who invest for a rainy day. Let us encourage them. In 1998, the Joint Economic Committee wrote that exemption of interest from taxation is a significant economic step we should take, and 'such a proposal would primarily benefit the low- and middle-income taxpayers.' H.R. 1163 would permit a single filer to earn up to $200, $400 for a joint filer, in bank account interest tax-free. It is very simple: let us help those who are primarily low- and middle-income taxpayers today.”