
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, April 26, 1995                   TAG: 9504260106
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-2   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                 LENGTH: Short

TAX PLAN EMPHASIZES SAVING

Two senior senators introduced tax legislation Tuesday to let Americans deduct every dollar they save and invest.

The proposal, from Senate Budget Committee Chairman Pete Domenici, R-N.M., and Sen. Sam Nunn, D-Ga., enters a crowded field of plans vying to replace the current income tax.

They include flat-rate income tax plans, pushed by House Majority Leader Dick Armey, R-Texas, and Sen. Arlen Specter, R-Pa., a presidential candidate; and a national sales tax advocated by another presidential hopeful, Sen. Richard Lugar, R-Ind.

Like various flat-tax proposals, the Domenici-Nunn plan would offer a family living allowance. A family of four, for instance, would not be taxed on its first $17,600.

Taxpayers also would get a rebate of the 7.65 percent payroll tax for Social Security and Medicare.

In addition to deductions for all income saved and invested, deductions would continue for mortgage interest, charitable contributions and extraordinary medical expenses. There would be a new college tuition deduction, capped at $2,000 per person.

by CNB