Provisions of 2001 tax cut legislation making retirement savings more attractive are set to sunset in 2011. Pennsylvania House calls on Congress to make the reforms permanent.
WASHINGTON – The Pennsylvania House of Representatives went on record on Monday in favor of secure, portable, sufficient retirement savings for all Americans. By a unanimous vote of 191-0, the House passed a resolution sponsored by Rep. Daryl Metcalfe (R-Cranberry Twp) that calls on Congress to make permanent the retirement savings reforms passed in the 2001 federal tax cut legislation.
The 2001 legislation increased the yearly IRA contribution limit from $2000 to $5000, expanded the ability of older workers to "catch up" if they started saving late in life, enhanced the portability of pensions, and tightened oversight and enforcement provisions to protect pensions. Unfortunately, due to obscure Senate procedural rules, these reforms will disappear in 2011 and the old law will come back into force, unless a new piece of legislation is passed making the reforms permanent.
"In 2001, we took a giant step toward personal, portable, and secure retirement savings for all Americans," said taxpayer advocate Grover Norquist, president of Americans for Tax Reform. "But we stand to lose all those gains. The contribution limit will drop by 60% if we don\’t make the reforms permanent, and the catch up, portability, and oversight provisions will fall by the wayside. The Pennsylvania House has done a great service to those who hope to retire with peace of mind."
The Pennsylvania resolution is the latest victory for Americans for Tax Reform\’s (ATR) Legislative Advisory Project (LAP). The LAP was launched in 2001 to encourage state legislators to take stands on federal issues and to encourage their federal representatives to vote for President Bush\’s original tax cut package. Since then, the project has been expanded into a broad range of federal issues, including National Missile Defense, judicial nominations, and tort reform. So far this year, 94 resolutions have been passed in 50 state bodies in 32 states. For more information, go to www.atr.org/lap/index.html.
"I commend Rep. Metcalfe and the Pennsylvania House for going on record and pushing their Congressional delegation to pass this needed legislation," continued Norquist. "The officials closest to the people have spoken unanimously. Will Pennsylvania\’s federal representatives listen to the people, or to Washington special interests?"