Letters to the Editor

Encourage savings with tax protection

When the economy is good, banks have money to lend and can pay interest rates better than the rate of inflation. With most banks paying less than 1 percent, two out of three (liquid and safe) are not good. The worst part is that the IRS will collect 15 percent of those earnings if your income is $16,701 to $67,700, or 25 percent if it's more than $67,700. Congress needs to propose there be no tax on interest earnings up to the rate of inflation. In that case, people would probably put more into interest-bearing accounts. The lenders would have more to lend to small businesses and homebuyers, kick-starting the economy. Now that's three out of three. Tom Kelly Lady's Island