Collins, Murray Introduce Bill Cosponsored by King to Preserve Critical Savings Option During Tax Season

Statement

As Americans prepare for tax season, U.S. Senators Susan Collins (R-ME), Chairman of the Aging Committee, and Patty Murray (D-WA), the Ranking Member of the Health, Education, Labor, and Pensions (HELP) Committee, today introduced the Save Access to a Valuable Investment Needed to Generate Savings (SAVINGS) Act of 2016. Original co-sponsors of the bill include Senators Angus King (I-ME), Jerry Moran (R-KS), and Claire McCaskill (D-MO). The bipartisan bill would preserve the Tax Time Savings Bond program, which provides taxpayers the option to receive IRS returns in the form of a paper U.S. Savings Bond. This program provides an important savings opportunity, particularly for consumers without a checking account, a savings account, or other type of banking product. Without action, the Tax Time Savings Bond program is set to expire after the 2016 tax season.

"U.S. Savings Bonds are an important, low-risk investment option for many individuals," said Senator Collins. "At a time when many are not saving enough, if at all, preserving Americans' ability to receive paper bonds through their tax returns will help individuals, particularly those without bank accounts or Internet access, set aside necessary funds for future expenses."

"For many years, paper U.S. Savings Bonds have given Americans across the country a trusted way to save and responsibly manage their money, which is why it makes no sense for Congress to allow the Tax Time Savings Bond program to expire at the end of this tax season," Senator King said. "In a rural state like Maine where access to the Internet can be unreliable or people may lack access to traditional banking accounts, this program can be a vital savings opportunity. We should work to preserve that option, not diminish it."

The Treasury Department had planned to discontinue the program after the 2015 tax season, but decided to extend the program through the 2016 tax season. The SAVINGS Act would require the U.S. Treasury Department to continue to provide an option on the IRS tax form for consumers to use some or all of their tax return to purchase a U.S. Savings Bond in paper form, for either themselves or a designated recipient.

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