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Hira Shakeel BSL 401 -D 11/15/2020 Question 1, whether there are other ways the tax code could be used to incentivize emergency savings? Saving money especially for families earning barely enough to pay their basic expenses, isn’t always a priority. Mostly my peers agreed on how a plan to promote boost different kinds of crisis reserve funds would be for the code to offer more noteworthy tax reductions to savers As any interest procured on savings is taxable income, people should be exempted from this. My peer Stone presented the idea of a matched Savings programs to encourage consumers to save by providing them with a financial match—such as $0.50 or $1 in match funds—for each $1 saved in a specified savings account (for applies for tax, employers, and non-profits), and also mentioned how Prize-linked savings (PLS) accounts incentivize people to save by providing them with a chance to win financial prizes when they save. My peer, Ana, was of the view that self-employment expenses deduction could also incentivize emergency savings. As economic market has shifted drastically over the past 6 months; many people lost their jobs, and the option allows for home-office rent, car and supply expenses and many more deductions under the 1099 status Undoubtedly, as agreed by everyone, the complexity of the tax code is a reason for the lack of emergency savings in this country. My peer Ross believed to combat this, financial literacy and health education must be more prevalent in this country. The most common response to this question was a creation of some sort of special tax account. My peer Carolina was of the view that Additional incentives can be created to cause people to want to save more, such as creating an “emergency savings account” Funds saved into that account can only be used for qualified pre-defined emergencies (i e , loss of job, sudden death of a family member that contributed to household income, disability or sickness of a household member that causes an individual to forego income pay, etc ) and could be considered tax free/deferred. Special tax accounts just like Retirement accounts as suggested by Matthew Hellinger. Tax cut jobs acted in 2017, where one gets a 20% reduction on your qualified business income to kind of match up with the 21% corporate tax rate could help save.