In his Labor day radio address, President Obama announced that beginning in 2010, taxpayers will have the option to purchase a U.S. Savings Bond when filing their federal taxes. The decision to increase access to what is possibly the most secure and low-cost, savings product sends important signals.

The Administration is showing a commitment to promoting economic recovery and household stability through common-sense means and is willing to act on implementation-ready, low-cost, practical, and scale-able proposals. You can find the full text of the White House press release here.

Why this is good news - especially for small savers

Returning the U.S. Savings Bond purchase option to the tax form will make it easier for more than 100 million tax filers to purchase this U.S. security with funds from their federal tax refund when they file their taxes. This maximizes simplicity and minimizes the hassle for the taxpayer who wishes to save a portion of their refund.

Yesterday Senator Menendez of New Jersey introduced a bill around an idea I've been pushing to give targeted families a larger tax refund if they commit to savings. I wrote about it here in a piece that ran in the American Prospect in April on tax day.

The Senator's bill is called the Saver's Bonus Act of 2008 and it proposes that savings contributed to eligible savings products could be matched on a dollar-for-dollar, up to $500.  Eligible savings products inlcude individual retirement accounts, educational savings plans, or interestingly U.S. Savings Bonds. Savings bonds are noteworthy because you dont have to own a bank account to have one. Familiy would qualify for the bonus if they also receive the Earned Income Tax Credit (EITC) and the bonus will be delivered through the tax filing and tax refund process.

Here is what the Senator has to say about his bill.

In honor of Tax Day, the American Propspect has run a piece of mine questioning the wisdom of Congress for telling everyone to spend their tax rebates in order to stimulate the economy. People would be forgiven if they felt unpatriotic using their rebates to pay down their debt or build up their saving. But it's not.

 A better idea is to give families a bonus when they commit to savings right on their tax return, which is an idea Senator Robert Menendez (D-NJ) is now promoting. He actually is poised to introduce a bill that would create a Saver's Bonus for all households that qualify for the Earned Income Tax Credit.

Check it out here.