[Congressional Record Volume 141, Number 57 (Tuesday, March 28, 1995)]
[House]
[Page H3819]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       INTRODUCTION OF THE TUITION ACCOUNT ASSISTANCE ACT OF 1995

  (Mr. ENGLISH of Pennsylvania asked and was given permission to 
address the House for 1 minute.)
  Mr. ENGLISH of Pennsylvania. Mr. Speaker, well, I agree with the last 
speech that a college education is an important strategic investment. 
That is why today I am introducing the Tuition Account Assistance Act 
of 1995.
  This bipartisan bill will eliminate the tax liability on the value of 
State prepurchased college tuition credits. Our TAP program in 
Pennsylvania has been hurt by the IRS when it treats appreciated 
credits purchased in this program as a capital gain.
  This bill will enable middle-class families to save for their 
children's education without capital gains penalties, and it is 
supported by Pennsylvania's State system of higher education.
  While the program in the State of Pennsylvania is relatively young, 
several other States with similar programs have had problems with the 
capital gains tax including Florida and Michigan.
  To me, this issue highlights how capital gains tax affects the middle 
class. One thing that has been lost in some of this floor discussion is 
that nearly 60 percent of tax returns claiming a capital gain were 
filed by taxpayers with less than $50,000 income.

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