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A timely study of the tax code and its implications for the future economic security of the millions covered by employer-sponsored retirement plans. The study concludes that federal statistics overstate the true federal revenue losses from the tax-favored treatment of pensions, showing that about three-fourths of the taxes deferred by active employees are repaid in retirement. The study also finds that restricting pensions in the tax code would hurt lower- and middle-income employees, since three out of every four pension plan participants earn less than $25,000 a year. The author's comprehensive research indicates that pensions add to retirement savings, help equalize income distribution among households, expand employment opportunity and enhance business productivity. Distributed by arrangement with the Employee Benefit Research Institute.
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