Uncle Sam Wants You...To Save
HOW TO INCREASE AMERIcans' savings? The Competitiveness Policy Council has a modest proposal: issue tax refunds in the form of interest-bearing U.S. savings bonds. If taxpayers didn't cash them in, the $85 billion in annual refunds could boost personal savings by 40%. The idea was contained in a report scheduled to be issued on Sept. 14. In it, the federal advisory council shied away from a subcommittee recommendation that the income tax be replaced with a tax on consumption that exempts all savings and investment income. Turns out the panel--which includes Clinton Administration economic adviser Laura D'Andrea Tyson--balked at endorsing an idea previously associated with Republican tax reformers.