Encouraging Savings through Tax-Preferred Accounts

Description

To boost their domestic saving rate, many OECD countries have introduced savings accounts that offer tax advantages, called tax-preferred savings accounts. This report describes and analyses various tax-preferred savings accounts, excluding pension-related accounts, in a cross-section of 11 OECD countries. Based on a comparison of results, the report then answers the following questions: (1) which income groups benefit the most from these accounts; (2) to what extent do these accounts generate additional savings; and (3) how much tax revenue is foregone due to these accounts. Based on the findings, the report also suggests measures on how to improve the effectiveness of tax-preferred savings accounts.  Read more... Executive Summary -- Chapter 1. Comparative Analysis of Tax-Preferred Accounts -- -Description of the Questionnaire -- Description of Tax-Preferred Accounts -- Comparative Analysis of Design Features -- Comparative Data analysis of Selected OECD Countries -- Summary and Conclusions -- Chapter 2. The Legislation Regulating Tax-Preferred Accounts in Selected OECD Countries -- Belgium: Tax-preferred deposits accounts and tax-preferred life insurance contracts -- Canada: Registered Education Savings Plans (RESPs) -- Denmark: Savings accounts for children/grandchildren -- Germany: Employee Saving Bonus (Arbeitnehmer -Sparzulage) and tax-preferred life insurance contracts -- Ireland: Special Savings Incentives Accounts (SSIAs), Special Savings Accounts (SSAs), Special Investment Accounts (SIAs) and Special Term Accounts (STAs) -- Italy: Tax-preferred life insurance contacts -- Mexico: Bank Deposits and tax-preferred life insurance contracts -- The Netherlands: Payroll Savings Schemes (Spaarloon) and Premium Savings Schemes (Premiesparen) -- Norway: Tax-favoured Savings in Shares (AMS) -- The United Kingdom: Personal Equity Plans (PEPs), Tax-Exempt Special Savings Accounts (TESSAs), Individual Savings Accounts (ISAs), the Savings Gateway, the Child Trust Fund, Tax-preferred life insurance contracts -- United States: Educational Savings Accounts (ESAs), 529 plans, Flexible Spending Accounts (FSAs) the Health Reimbursement Arrangements (HRAs), Health Savings Accounts (HSAs), Medical Savings Accounts (MSAs) Tax-preferred insurance contracts -- Annex: Data on Tax Preferred Accounts in Selected OECD Countries -- References.