[Congressional Record Volume 142, Number 117 (Friday, August 2, 1996)]
[Senate]
[Page S9533]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            HOMEMAKER IRA'S

  Mrs. HUTCHISON. Mr. President, I want to say, along with many others 
who have talked about some of the really important legislation that has 
been accomplished in the last few weeks in Congress, along with the one 
that I have worked the hardest for, and the one that I think will have 
a lasting impact, not tomorrow and not next year, but 20 years from 
now, and that is the homemaker IRA's.
  When I got to the Senate, I was very surprised that there was still 
the inequity against homemakers being able to save for their retirement 
security in the same way that someone who works outside the home is now 
able to do. In fact, this penalizes the one-income-earner family when 
the homemaker stays home and raises children. I think we should be 
encouraging homemakers to be able to do that, rather than discouraging 
them. That is why Senator Mikulski and I introduced the homemaker IRA 
bill in 1993.
  We have been working for these 3 years, and this year, Senator Roth, 
the chairman of the Finance Committee took up our cause. He and 
Chairman Bill Archer said that this would be a priority for them, and I 
want to thank Chairman Archer and Chairman Roth for not only saying it 
would be a priority, but for delivering on that promise. They have 
delivered homemakers of this country an equal opportunity to save for 
their retirement security.
  What this means, Mr. President, is that a homemaker will now be able 
to set aside $2,000 a year toward retirement security, accruing tax-
free. That can make a difference of over $150,000 in a lifetime of 
savings, so that now a one-income-earner couple, if they both save the 
maximum amount for 30 years, would have around $350,000 as a nest egg. 
That could make a big difference in retirement planning, especially for 
people who are squeezing to make ends meet so that one parent can stay 
home and raise the children.

  So this is a wonderful accomplishment. It is one for which will not 
be appreciated, probably, in the near future because it does have to 
accrue into retirement. But this was a great bipartisan effort.
  I do want to commend Senator Lott for helping us move this through. I 
want to commend Senator Roth and Congressman Archer for shepherding it 
through the committees in the House and Senate. I just want to say how 
much I appreciate Senator Mikulski, Senator Feinstein, Nancy Johnson, 
and Jennifer Dunn and Susan Molinari on the House side, along with 
Barbara Kennelly, for making sure that this did become an 
accomplishment of this session of Congress.
  Thank you, Mr. President. I yield the floor.
  Mr. COATS addressed the Chair.
  The PRESIDING OFFICER. The Senator from Indiana.

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