Sen. Coons cosponsoring minimum savings law
Delaware’s junior senator is cosponsoring a bill to create a minimum savings law.
Sen. Chris Coons (D-DE) is teaming up with Sen. Amy Klobuchar (D-MN) on the Saving for the Future Act.
The bill would require employers with 10 or more workers to match their employees in contributing 50 cents per hour of work into a portable retirement fund.
The law also proposes a 2% raise in the corporate tax rate to pay for employer tax credits. In turn, employers would receive a tiered tax credit for their first 30 employees receiving the benefit—a 50% break for the first 15 employees and a 25% break for employees 16 through 30.
Coons says the tax hike that would offset the cost is negotiable.
“Speaking for myself, I like to introduce bills that have at least a proposed offset, so it’s clear they do not add to the deficit and add to the national debt,” said Coons. “Whether or not there is ultimately this offset or another offset, I think, would end up being a negotiation to help get Republican cosponsors.”
Under the law, an employee’s first $2500 in savings would go into an accessible emergency savings fund.
Coons says the majority of workers will receive at least $1,000 per year of employer savings contributions. He adds the bill would affect upwards from 50 million Americans.
“About 50 million American workers currently not able to participate in a retirement plan through work who would begin participating under the Savings for the Future Act,” said Coons. “Depending on how many small employers choose to participate it could end up being significantly more than that.”
Delaware’s Congresswoman Lisa Blunt-Rochester is cosponsoring a corresponding bill in the House.