What would an extra $1,000 mean for your family’s financial security? Would it help cover essentials, pay bills, or repair your home or car?

At a time when affordability is top of mind for many Americans, every extra dollar matters.

The most recent consumer sentiment report confirms that economic anxiety is very real, finding that Americans haven’t felt this pessimistic about the economy in over a decade.

Even high earners are feeling financially pinched. Congress says affordability is a priority, but real relief requires real policy changes. While lawmakers debate broader economic solutions, there are immediate, practical reforms that could help Americans keep more of their money.

Lawmakers should focus on righting a wrong in the federal tax code that punishes Americans who are saving for their financial futures. For many middle-income families, a mutual fund investment is a pathway toward a down payment on a first home, sending a child to college, or achieving financial security in retirement.

Mutual funds are among the most common ways middle-income families save for major life goals, but the tax code requires investors to pay taxes on money they have not received.

The bipartisan GROWTH Act would end premature taxation of mutual fund investments by taxing investors only when they sell their shares, aligning mutual fund taxation more closely with how stocks and bonds are taxed. Right now, Americans who invest in mutual funds pay taxes yearly on fund distributions they automatically reinvest, even though they don’t actually receive this money as cash.

This means the federal government taxes investors on the money that remains invested in a mutual fund and continues to grow. For example, if an American invested $10,000 in a mutual fund, he or she would miss out on as much as $1,300 in returns over the next 10 years under the current system.

To be clear, mutual fund owners are largely middle-class people. According to research, more than half of America’s mutual fund investors are from households earning less than $150,000 a year. The GROWTH Act recognizes this reality by ensuring savers aren’t penalized for making responsible financial decisions. At a time when many are struggling with affordability, lawmakers should remove penalties on responsible saving.

Furthermore, the GROWTH Act is a pro-family idea. It’s no secret that raising a child comes with extra expenses. In Colorado, it costs just under $35,000 a year to raise a child. If young couples feel that tax structures prevent them from building wealth for the future, including savings that can help pay for raising a child or higher education, they may put off growing their families.

Championing tax fairness might not be the flashiest idea, but it’s a practical solution that will not go unnoticed by middle-class Americans during filing season. Americans should feel rewarded for saving, not punished by outdated tax rules.

Every dollar goes a long way in today’s economy. By modernizing how mutual fund investments are taxed, Congress has an opportunity to demonstrate that it is serious about supporting financial security for Americans and building a stronger long-term economy.

Scott Tipton, R-Colo., was on the House Financial Services Committee for several terms. He wrote this for InsideSources.com.