TAX-FREE PIGGY BANKS?

Senate Budget Committee Chairman Pete Domenici (R-N.M.) and Sen. Sam Nunn (D-Ga.) -- two of Washington's most steadfast deficit hawks -- today proposed legislation to permit Americans to deduct every dollar they save and invest. The plan, asimplification of the tax codealong the lines of the Individual Retirement Account, arrives just as federal income tax reform is shaping up as a major issue in the1996 presidential election. GOP senators and White House hopefulsRichard Lugar of IndianaandArlen Specter of Pennsylvaniahave already embraced a "flat tax," andBob Doleis thinking it over.