The taxation of savings, and especially the taxation of bank interest, is one area canvassed by the Henry review where the government is suggesting it may take a closer look.The tax review proposed a discount of 40 per cent on the tax otherwise payable (at a taxpayer's marginal rate) on interest income from bank deposit, debentures and similar savings.A similar discount would apply to income, and, more controversially, expenses from residential property investment.The review also proposes to trim the discount that applies to income subject to capital gains, to 40 per cent from 50 per cent.The review's proposals for "reform directions" on bank savings is tied up, in the minds of the review's authors, with comparable changes affecting similar forms of income.For those looking for a cut in the tax on income from interest the issue is that the comparable forms of income - from property and capital gains - are just too much trouble politically.