WASHINGTON - The American Forest & Paper Association (AF&PA) applauds introduction of the "Save Access to a Valuable Investment Needed to Generate Savings" (SAVINGS) Act - H.R. 3385 - introduced by Representative Matt Cartwright (D-PA).
Many Americans prefer paper for their important documents. We believe the federal government should continue the Tax-Time Savings Bond program so those Americans who prefer paper savings bonds to electronic bonds are provided with that option.
Tax-Time Savings Bonds offer families the opportunity to set aside some of their income tax refund by using IRS Form 8888 to purchase a U.S. savings bond. Since 2011, the only way individuals are able to purchase paper bonds is through the Treasury's Tax-Time Savings Bond program, which also allows an electronic purchase option. If the Treasury Department moves ahead with plans to discontinue it after the 2014 tax season, Americans will only be able to purchase savings bonds online. This would leave approximately 20 percent of Americans who lack online access and the more than 10 million who do not have a bank account, without access to an important savings program. The SAVINGS Act would preserve the bond program until 2018 in the absence of a universally accessible, giftable tax-time alternative.
"Elimination of the Tax-Time Savings Bond program would be a significant loss for the many Americans who use it as an investment tool and would disenfranchise millions of Americans who aren't able to purchase bonds electronically," said AF&PA President and CEO Donna Harman. "Continuation of the program will provide the opportunity for all Americans to save not just for themselves but for their families."