“We simulated a fiscally responsible way to introduce a Canada-style USA in the U.S., paid for by removing the tax advantages of HSAs—a reform that would also simplify the tax code, reduce compliance costs, and shift the benefits toward low- and middle-income households. This is not the only way to implement a USA, but it is an option with a proven track record and clear benefits. It would bring more financial security and freedom to low- and middle-income households in America and lead to a simpler tax code.”
Conservative think tank proposes Roth-like universal savings accounts popular in Canada and UK that would boost savings and capital ownership among low- and moderate-income people. Legislative pay-for could be ending tax breaks for health savings accounts (HSAs), which mainly benefit high-income people.