Nation IN BRIEF : WASHINGTON, D.C. : Bentsen Cites Study to Support IRA Bill

Sen. Lloyd Bentsen (D-Tex.) released a Library of Congress study showing that a 1% reduction in interest rates would help add about $14 billion in capital investment in the United States in 1991 and another $25 billion in 1992. Bentsen is on a campaign to persuade Congress to approve a new form of individual retirement account, which he says will spur savings and reduce interest rates. Under the Bentsen plan, every participant would be allowed to deduct at least 50% of the maximum allowable IRA investment. In addition, investors would be able to withdraw part of the investment before retirement to buy their first home or to pay for their children’s college education without penalty.