I am shocked that the Reagan Administration would consider rescinding the 401(K) pension plan to balance the budget. This plan is needed because:
--It helps salaried people prepare for retirement (20 million participants).
--It strongly affects about 70 million voters over 50 years of age.
--It encourages saving to provide investment dollars for the private sector.
--It provides saving dollars for Treasury bills and bonds.
--It reduces our dependency on foreign investors.
It would be better to raise funds with a national sales tax, which taxes consumption, rather than tax saving. Our national savings rate is only 3.5% at present versus 20% in Japan!
ARTHUR J.R. SCHNEIDER