Legislation that would repeal the provision to withhold taxes on interest and dividend income is before Congress and the lawmakers should waste no time considering it. The provision – part of the Tax Equity and Fiscal Responsibility Act of 1982 – has been branded widely as intrusive, unnecessary and confusing to savers and financial institutions alike. Rep. Bob Whittaker. D-Kan., sponsor of a repeal measure, cites these arguments; – Withholding will have negative effects on the economy, working against the goal of encouraging personal savings. The United States already has one of the lowest savings rates among the developed nations, Whittaker says, – Reams of testimony given last year indicate adherence to interest and dividend tax rules already is high, and “There are viable alternatives to close the compliance gap which are much less costly.” (Already financial institutions send a report on savings to the IRS as well as the individual investor.) – Withholding requirements would greatly increase the paperwork and regulatory burden on financial companies, creating for them additional expenses which would have to be passed onto the consumer. – The provision inflicts “confusion and terror” on senior citizen savers who depend on interest and dividend payment for their monthly expenses. “The idea of withholding, coupled with the confusion rom the complicated exemption process, has driven some to consider withdrawing their money from local banks,” the legislator claims. Another- frequently heard protest is that the new law infers lack of trust by the government and punishes honest taxpayers. Concerned citizens, business institutions and others should make their beliefs known to their congressmen. The objections being voiced against withholding outweigh the arguments for it so the 1982 provision should be repealed. This isn’t to infer that improving taxpayer compliance is not important. It is indeed. But as Rep. Whittaker suggested, less objectionable alternatives should have priority.