Savings Coalition Favors Congressional IRA Proposals.

Kathy Hamor of the Savings Coalition of America, Washington, has urged the administration to support the IRA provisions contained in H.R. 2491, the Seven-Year Balanced Budget Reconciliation Act of 1995. Hamor points out that the cost of the IRA initiative contained in the administration's balanced budget proposal and in H.R. 2491 are very similar. However, the Savings Coalition considers the provisions in H.R. 2491 to be "more beneficial to all Americans."

In response, Treasury Assistant Secretary (Tax Policy) Leslie B. Samuels assures Hamor that "the administration's proposal is designed to encourage savings by extending IRA eligibility to more middle- income families."

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[See 96 TNT 22-24 for the Jan. 16, 1996 letter.]

Ms. Kathy Hamor

Dear Ms. Hamor:

[1] Thank you for your letter to President Clinton supporting the expansion of IRAs as part of any balanced budget agreement. The White House referred your letter to the Department of the Treasury which has responsibility for issues of tax policy.

[2] As you know, the Administration's IRA initiative has been included in the President's balanced budget proposal. The Administration's proposal is designed to encourage savings by extending IRA eligibility to more middle-income families. For your information, I am enclosing a copy of Treasury's "General Explanations of the Administration's Revenue Proposals" which contains a description of the Administration's IRA proposal.

[3] The Administration desires to work with the Congress to reach agreement on a balanced budget that best serves the American people. We will take your concerns into consideration as we address this issue in our ongoing tax policy discussions as we continue to work with the Congress on the balanced budget legislation.

[4] Thank you again for writing.

Sincerely,

Leslie B. Samuels

Enclosure