[Congressional Record Volume 140, Number 68 (Thursday, May 26, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: May 26, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
         RETIREMENT ANNUITIES MAY BE TARGET OF NEW CLINTON TAX

  (Mr. HYDE asked and was given permission to address the House for 1 
minute and to revise and extend his remarks.)
  Mr. HYDE. Mr. Speaker, the same folks who brought us the largest tax 
increase in the history of the Republic last year are now drawing up 
plans to add an onerous tax on people's retirement annuities.
  Currently, an annuity's increase in value over time--its inside 
buildup--is taxed when the owner begins to draw income. This is 
analogous to capital investments such as real estate or stocks, where 
any gains are not taxed until sale.
  President Clinton is considering ending this tax deferral. We should 
not let this happen. Two-thirds of annuity owners have annual household 
incomes of under $50,000. These people are not rich and need their 
annuities to retire in dignity. Unfortunately, we have come to learn 
from painful experience that President Clinton's definition of ``rich'' 
includes many who view themselves as ``middle class.''
  Both the Treasury Department and the Office of Management and Budget 
are already backing away from this foolishness. Let us heed their 
counsel.

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