Why New Savings Plans Won't Work
New York Times (03/13/03) p.11; Varian, Hal R.

President Bush's proposed tax plan would eliminate taxes on some dividends and extend tax-exempt savings programs, but while it might help some people, it would also create more confusion, according to this opinion piece. The proposed Employer Retirement Savings Accounts, Lifetime Savings Accounts, and Retirement Savings Accounts, which are similar to 401(k) plans and Roth IRAs, simplify existing programs but have annual contribution limits that are too high. The savings plans are not likely to encourage much saving since the tax incentives are not great enough, the commentary says.

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