Britian and Canada have experimented with, implemented, and are now expanding universal savings vehicles, according to the Cato Institute. Contributing after-tax $$$s, individuals can withdraw from these accounts at any time and for any reason. However, the incentive is NOT to withdraw needlessly because earnings (capital gains) are tax free.
- In Britain, the contribution limit on Individual savings accounts has been raised to ~$23k.
- Canada has doubled the annual contribution on its Tax-Free Savings Accounts to $10k.
Think about it: No need for college savings accounts, health savings accounts, and the like. A "one stop" place to save, tax free.
It's time for Congress to create "Universal Savings Accounts" (USAs). Using after-tax $$$s, earnings and withdrawals could be made at any time and for and reason. In addition, USAs would be tax-free. Simple. Flexible. Liquid.
Best of all, and as the Founding Fathers intended, USAs are pro-freedom, pro-family, and pro-growth.
Let the discussion begin...
To read about USAs, click on the following account:
"Universal Savings Accounts (USAs)."