Post by novaanglicana on May 18, 2020 18:30:27 GMT
Building Block Savings Account Act
Author: Rutger de Vries-Lau (UCP)
Sponsors: Floortje Cheung (UCP), Susilo Sri (UCP), Joseph Yu (UCP), Jan van der Stel (NVP), Yang Kang (DP)
Sponsors: Floortje Cheung (UCP), Susilo Sri (UCP), Joseph Yu (UCP), Jan van der Stel (NVP), Yang Kang (DP)
A bill to allow Bandurians to save for their future
BE IT THEREFORE ENACTED, as follows:
§1 - Building Block Savings Account
- The category of Building Block Savings Account (BBSA) is hereby created as a tax-free, limited-use bank account.
- BBSAs can be used for the following purposes: Health expenses, the purchase of real estate, for starting a business, education expenses, including tuition or other school/university fees, either for themselves or their children under the age of 25, or when the owner of the account has been dismissed from their employment.
- At the legal retirement age, all restrictions on the use of a BBSA by its owner expire.
- Parents can set up a BBSA for their minor children; the money in said account may not be used until the child reaches the age of majority.
§2 - Contributions
- Contributions made to a BBSA by an owner of a BBSA, the employer of such an individual, or the parent of a minor child, shall not be taxed.
- Contributions to a BBSA by an individual in each pay period shall be subject to the following minimums and maximums:
- 0-50% of the median income: 2.5-10%
- 51-75% of the median income:2-8.5%
- 76-100% of the median income: 1.5-7%
- 101% or more of the median income: 1-5%
- Employers shall contribute no less than 2.5% of the employee's wages during each pay period to a BBSA owned by their employee; employers may contribute up to 5% of the employee's wages.
- Self-employed individuals are subject to the contribution minimums and maximums outlined in 3-6 + 5% of their salary per pay period.
- Each calendar year, the Government of Banduria shall contribute 2.5% of the individual's yearly wages, to all individuals with a BBSA who make no more than the median income in the form of a one-time payment.
- The Government of Banduria may choose, once per calendar year, to contribute an additional percentage of an individual's yearly wages, up to the rate of inflation for that calendar year, to all BBSAs. This shall not be required.
- Parents may contribute up to an additional 2.5% of their wages per pay period to each minor child with a BBSA.
§3 - Administration
- All commercial banks in Banduria shall be required to offer BBSAs to their customers.
- Nothing in this legislation shall be construed to prevent commercial banks from offering traditional savings accounts, and no commercial bank shall refuse to offer a traditional savings account if they also offer BBSAs.
- Banks which offer BBSAs shall set their own interest rates, with a minimum interest rate of 0.5%.
- No bank which offers a BBSA shall use funds in a BBSA for the purposes of investment in a stock market(s) or other financial speculation.
- The Government of Banduria shall guarantee all funds in BBSAs up to a maximum of ƒ100,000.
- All employers and banks shall remit relevant data on BBSA contributions to the Ministry of Finance each calendar year, and the Ministry of Finance shall periodically conduct audits of employers and banks involved with BBSAs.
§4 - Incentives
- All commercial banks are encouraged to offer BBSAs to under-banked residents of Banduria.
- Under-banked residents of Banduria are defined as residents of Banduria who do not have sufficient access to mainstream financial services, whether because of poverty, residence in a rural area, or historic ethnic or religious discrimination.
- Commercial banks whose customers, as determined by the Ministry of Finance, include at least 10% under-banked residents of Banduria, shall receive a tax credit of 5% of their tax due.
- For every additional 2% of their customers that meet the criteria, the tax credit shall increase by 1%, up to a maximum of 25% of their tax due.
