by Mitch Kokai
Senior Political Analyst, John Locke Foundation
Chris Edwards of the Cato Institute highlights a new report that could offer some helpful hints to American tax reformers.
The study looks at Flake-Brat legislation for Universal Savings Accounts (USAs), and it examines the experiences of Britain and Canada, which have enacted similar all-purpose savings vehicles.
British Individual Savings Accounts (ISAs) and Canadian Tax-Free Savings Accounts (TFSAs) are hugely popular across income and age groups. They are superior to the narrow-purpose savings vehicles in the U.S. tax code such as IRAs and ESAs.
With tax reform on the agenda this year, policymakers have an opportunity to revolutionize personal savings with USAs.