SECTION 127 URGENT ACTION ALERT

Subject: URGENT ACTION ALERT
Author: <Ritaapa@aol.com> at Internetmail-mn
Date: 7/28/1999 6:21 PM

The future of Sec. 127 is in serious peril. As many of you know, there were no provisions addressing Sec. 127 in the House-passed tax package you have been reading about in the papers.  We were pleased, however, that the Senate was supporting a permanent extension of Sec. 127. Until today.

We have just learned that on Thursday, July 29, the Senate plans to consider two amendments that would remove funding for Sec. 127. These amendments call for educational IRAs and a tax credit for stay-at-home parents. While believe these are laudable goals, we do not believe they should be funded by sacrificing the tax benefits associated with employer-provided assistance under Sec. 127 of the Internal Revenue Code.

If the provisions are removed from the Senate bill, there is virtually no change of getting it added back into a final tax reduction package.

Please call and/or fax your Senators IMMEDIATELY and tell them to oppose the removal of the Sec. 127 provisions from the Senate tax reform package. Most of you should have a copy of the APA Lobbying Handbook. That will tell you who your senators are and how to reach them. You can also check out information about your Senators using APA's new lobbying tool in the What's New Section of APA's Websight at http://www.americanpayroll.org

DO NOT USE THE PROTOTYPE LETTER THAT IS ON THE WEBSITE NOW, SINCE IT DOES NOT APPLY TO THE IMMEDIATE EMERGENCY.

If you do take action in the next 24 hours, please let me know, so we can publicize your efforts in our publications. Call me if you have any questions.

Please pass on this e-mail to your chapter members and colleagues.

Rita Zeidner, Mgr., Government Relations, APA
202-682-4785