A bill to amend the Internal Revenue Code of 1954 to exclude from gross income up to $4,000 of interest on savings in the case of individual taxpayers.

Amends the Internal Revenue Code to increase to $2,000 ($4,000 for joint returns) the amount of interest which may be excluded from gross income. Changes the effective date of such exclusion from 1985 to 1983. Revises the definition of interest for purposes of such exclusion.