August 11, 1994
TO: BOARD OF GOVERNORS NO. 75-94
FEDERAL LEGISLATION COMMITTEE NO. 20-94
FEDERAL LEGISLATION MEMBERS NO. 17-94
IRA ISSUES GROUP
RE: BIPARTISAN COMMISSION SAYS NATIONAL SAVINGS MUST BE RAISED
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The Bipartisan Commission on Entitlement and Tax Reform on
August 8 approved a series of interim findings. The second
finding states: "To ensure the level of private investment
necessary for long-term economic growth and prosperity, national
savings must be raised substantially." Other findings point up
the need for bringing social security and Medicare costs and
revenues into long-term balance.
The Commission was established in November 1993 to recommend
alternative tax reform proposals and revisions in federal
entitlement programs. It is chaired by Senator Robert Kerrey (D-
NE), and has 32 members, including 12 Senators and 10 Members of
Congress.
In July, the Institute submitted written testimony to the
Commission. This testimony supports changes in the tax law
designed to stimulate increased savings (such as expanded
availability of Individual Retirement Accounts and reduction of
barriers to the use of simplified employee pensions and 401(k)
plans), and suggests that broader approaches to restructuring the
tax system to encourage savings also merit attention (See
Memorandum to Federal Legislation Committee Members No. 18-94
dated July 29, 1994).
Attached is a copy of the Commission's findings as approved.
If you wish additional information, please contact the
Legislative Affairs Department at 202/326-5890.
This memo can be found on FUNDS, the Institute's Fund User
Network and Delivery System, under "Legislative Affairs;
Washington Update."
Michael Stern
Legislative Representative for Taxation
Attachment