[Congressional Record Volume 140, Number 1 (Tuesday, January 25, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: January 25, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                         HELP FOR OUR STUDENTS

                                 ______


                       HON. THOMAS J. BARLOW III

                              of kentucky

                    in the house of representatives

                       Tuesday, January 25, 1994

  Mr. BARLOW. Mr. Speaker, today I rise to announce the introduction of 
the Education Savings Assistance Act of 1994. I am honored that my 
colleague from Kentucky, Representative Scotty Baesler is a cosponsor 
of this measure.
  The ability of Americans to provide for our children's college or 
advanced vocational education has declined significantly in recent 
years due to escalating college tuition expenses and cutbacks in 
Federal student aid. This trend has occurred at a time when advanced 
education is becoming more important if our children are to compete in 
a more competitive economy.
  In 1988, the Commonwealth of Kentucky established the Kentucky 
Educational Savings Plan Trust [KESPT] in order to provide parents with 
assistance in saving for their children's future. To further this goal, 
Kentucky enacted legislation that enables parents to establish special 
education savings accounts. This legislation also provides tax-free 
treatment for any gains earned on these accounts, and allows parents to 
lock-in tuition rates at current levels for Kentucky colleges and 
universities that participate in the program. While the plan is still 
in its infancy, there is general agreement that it is a resounding 
success.
  In this era of budget discipline and increased personal 
responsibility, and with our Nation facing an increasingly competitive 
world, it is just plain good common sense that we should provide 
assistance in the form of Federal tax incentives so that we assist our 
citizens in improving their skills for the high-technology, highly 
skilled work force of the next century. This legislation that I am 
introducing today will provide a Federal tax exemption for gains earned 
on qualified State educational savings programs similar to the program 
established by Kentucky. This legislation will encourage parents to 
plan ahead for the benefit of their children and improve the overall 
savings rate for our Nation that has significantly declined in recent 
years.
  I urge all Members of both parties to support this legislation as it 
proceeds through the legislative process.

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