In 1986, they were entitled to full deductibility.

Among other things, the I.R.A. measure would restore full deductibility - up to $2,000 - on higher incomes that was eliminated in the Tax Reform Act of 1986.

Opponents of full deductibility would presumably at least allow losses to be capitalised into the investor's cost base.

Gifts to museums have therefore fallen dramatically since the one-year tax window allowing full deductibility closed on 30 June.

Last year, he helped restore the full deductibility of donations of art and appreciated stocks to museums and art institutions.

"Unlike restoring the full deductibility of I.R.A. contributions," Mr. Schreyer's statement reads, the Merrill plan "would cost the Treasury very little now."

And to allow full deductibility for the self-employed, which is an increasing percentage of New York's population in this new dot-com economy.

(For couples, full deductibility is phased out starting at $40,000.)

The referendum would have raised the threshold to $17,000, increased the tax rate for higher earners, ended the state's full deductibility of federal income taxes, and expanded the sales tax.

Favors tax credits for first-time home buyers, and restoring full deductibility for I.R.A. accounts.