Indeed, the broadest objection to tax-based savings incentives is that they are "inefficient" in the sense that they disproportionately erode revenue.

The American Homemakers and Caregivers Act - to target savings incentives and IRAs on middle and low-income Americans.

"In the choice between savings incentives and investment incentives, we should choose investment incentives," said Alan J. Auerbach, an economics professor at the University of Pennsylvania.

But Administration officials argue that savings incentives primarily benefit the affluent, since they have the most money to save.

"I'm deeply interested in putting together a package on savings incentives, and part of that is obviously capital gains," Mr. Bentsen continued.

For example, Senator Mitchell, in his speech at the National Press Club today, advocated a tax credit for business investments, savings incentives and help for first-time home buyers.

One is the supply-siders' fix of choice, emphasizing lower marginal tax rates, savings incentives and reduced regulation.

But Mr. Skinner warns that tax-based savings incentives can do little to solve this problem.

And Congress has never incorporated such direct matches into the savings incentives it provides.

"The savings incentives are really about long-term policy."