Congressman John B. Larson announced Monday his push for federal legislation giving American workers and employers financial incentives to keep their skills economically competitive.
With downtown Hartford’s Capital Community College as a backdrop, the 1st District U.S. representative who serves on the House Ways and Means Committee said the accounts would be owned by workers age 18 to 70 and would move with them from one employer to the next.
Employers also would have the opportunity under the Lifelong Learning Accounts Act to earn tax credits for matching employee contributions, similar to a 401K savings account, Larson said. Larson’s office said he plans to introduce the measure on Tuesday, with Congress back at work after the July 4th break.
Under the proposal, a total of $2,500 can be contributed to the account during a year, and workers can receive up to a $750 tax credit for making these contributions.
In addition, employers have the option of contributing as well and will receive a 25 percent tax credit on their contributions. The accounts will also be portable and worker-owned, meaning that they will stay with the individual even if they lose their job, switch jobs, or stop working.
“Now more than ever, continuing training and education are invaluable for workers to remain competitive in the job market,” he said in a statement. “This bill will provide a significant tool to make it easier for millions of Americans to continue their education.”
Larson was joined at Monday’s announcement by Chancellor Marc Herzog of Connecticut Community Colleges System; Amy Sherman of the Council for Adult and Experiential Learning (CAEL), Maura Banta from IBM Corp., which offers a similar program; and Alice Pritchard from the Campaign for a Working Connecticut.
