[Congressional Record Volume 141, Number 2 (Thursday, January 5, 1995)]
[Extensions of Remarks]
[Page E52]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                     AMERICAN DREAM RESTORATION ACT

                                 ______


                          HON. PHILIP M. CRANE

                              of illinois

                    in the house of representatives

                       Wednesday, January 4, 1995
  Mr. CRANE. Mr. Speaker, today I have the distinct honor of 
introducing the American Dream Restoration Act as the bill's principle 
sponsor.
  As 1 of 10 bills derived from the Contract With America, this 
legislation will enable American families to use more of their hard 
earned income to save, to invest, to pay for their children's 
education, to buy a home, to pay for medical expenses, or to use in 
whatever way they so desire. The American Dream Restoration Act is 
divided into three sections, and I would like to briefly explain each 
provision for my colleagues.
  The first section provides for a $500 per child tax credit for 
dependents under the age of 18. The full credit would be available to 
families with adjusted gross incomes under $200,000.
  The bill's second provision eliminates what is referred to as the 
marriage penalty. Under the current Internal Revenue Code, many married 
couples pay higher taxes than they would by filing two individual 
returns. In order to end this inequity, families currently subject to 
the marriage penalty would be entitled to a tax credit.
  The final provision of the bill is referred to as the American dream 
savings [ADS] account and would establish a new back-ended individual 
retirement account [IRA]. The ADS account would allow a nondeductible 
contributions of up to $4,000 for a married couple filing a joint 
return--$2,000 for an individual--beginning in 1996. Tax free 
distributions for first-time home purchases, education, medical 
expenses, and retirement would be allowed if the money is held in the 
account for at least 5 years.
  Mr. Speaker, it comes as no surprise to American taxpayers to find 
that when you combine their Federal, State, and local taxes, they are 
currently being taxed at all-time record high levels. Tax relief for 
American families is long overdue. With a new majority in Congress, we 
now have the opportunity to change direction. Indeed, we have a mandate 
from the voters to dramatically change direction. This is a mandate 
that no one can ignore. I look forward to working with my colleagues, 
both Democrats and Republicans, toward the goal of making the American 
Dream Restoration Act a reality.
  I would like to close this statement on a personal note. In the years 
that I have served in Congress, I have fought for tax relief, only to 
see it thwarted or reversed at a later date. I have been true to my 
philosophy of less spending and lower taxes, only to see the majority 
in Congress reject this philosophy year after year. I cannot possibly 
convey to my colleagues what it is like for me, after 25 years in which 
my political views have been the minority in the House of 
Representatives, to now have this opportunity to change the direction 
of Congress. Congress has been on a course that has been destroying the 
economic well-being of the family and it is absolutely critical that we 
change course. I am honored to serve in this Congress and play a part 
in the effort to make a change.


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