Senate Tax Revision Bill

While there might be some good news on the surface of the Senate Finance Committee tax proposal, taxpayers will find some bads news there if they dig a little deeper.

The committee has led us to believe that its proposal will decrease most of our tax burdens. That isn’t at all true. Many middle-income families will owe more in taxes due to lost deductions for future individual retirement accounts, which will be disallowed for taxpayers who already have employer-provided retirement plans. In addition, these lost IRA opportunities as well as limits on other tax-deferred savings vehicles will deprive many Americans of the ability to plan for their retirements.

IRAs are considered by many to be among the most effective methods for retirement planning. Since 1981, IRA assets have jumped 86% from $26 billion to an estimated $250 billion by April 1986. More than 40 million of us currently own IRAs. With numbers like these, you can’t help but question the merit of a tax plan that would virtually put an end to a planning tool that helps many secure their financial futures after age 65.

C. KENT FREUNDT

Newport Beach