Nearly two-thirds of Americans said they would save more money if fully tax-deductible individual retirement accounts were reinstated, according to a joint survey by Lake Research and The Luntz Research released today by the Savings Coalition of America. And more than one-third of them said they would prefer legislation to expand IRAs over cuts in the capital gains tax rate or a $500-per-child tax credit. At the same time, Merrill Lynch today projected expanded IRAs would result in more than $1 trillion of new savings over the next decade, John L. Steffens, executive vice president of the firm's private client group, said at a press conference held by the Savings Coalition.
Also speaking at the press conference, Sen. Kay Bailey Hutchison, R-Texas, said she would add to the Republicans' 1997 budget outline, a `` `Sense of the Senate' which says we must have IRA legislation this year.'' Ms. Hutchison last year co-sponsored legislation with Sen. Barbara Mikulski, D-Md., that would allow non-working spouses to set aside $2,000 a year in spousal IRAs.