Encouraging Savings through Tax-Preferred Accounts

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.

01 Mar 2007 126 pages English

https://doi.org/10.1787/9789264031364-en 9789264031364 (PDF)

Author(s): OECD