More IRA Tax Breaks Would Boost Savings

Americans would save more in their individual retirement accounts if the government offered more tax breaks, according to a national survey.

Nearly two-thirds of Americans polled said they would increase their savings if IRAs were expanded to allow more tax-free investments. Of those, 25% said they would “definitely” raise their savings rate, while 39% said they would “probably” increase their savings.

The poll was based on a national sample of 1,000 adults interviewed earlier this month. It was conducted by political pollsters Frank Luntz and Celinda Lake for the Savings Coalition of America, an organization seeking to increase the national savings rate.

Asked which of the tax proposals currently before Congress should receive the highest priority, those polled were evenly split between wanting expanded IRAs and a cut in the capital gains tax. About 29% of those questioned supported expanded IRAs. The same percentage wanted lower capital gains taxes.

A $500-per-child tax credit is supported by 25% of voters polled, according to the survey.