Unfortunately, the debate over IRAs has been marred by widely trumpeted but flawed and inaccurate analysis. These inaccuracies must be cleared up. The fact is that workers would receive much higher retirement benefits from their IRAs with the deductible IRA under current law than with the non‐deductible IRA under the Senate Finance Committee bill. Restoring the full deductibility of IRAs under the Committee bill is necessary if workers are to receive about the same benefits in retirement from their IRAs as under current law.
Moreover, it should be recognized that the policy justifications for fully deductible IRAs are still applicable and compelling under the Committee’s sweeping tax‐reform proposal. Opinion polls also show that the public strongly supports restoring IRA deductibility. Doing so would only strengthen the appeal of tax‐reform legislation.