[Congressional Record Volume 143, Number 65 (Friday, May 16, 1997)]
[Senate]
[Page S4661]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         ADDITIONAL STATEMENTS

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                  EMPLOYEE EDUCATIONAL ASSISTANCE ACT

 Mr. BURNS. Mr. President, I recently added my name to the list 
of 37 cosponsors of S. 127 on behalf of those hard-working folks who 
are trying to get ahead in their jobs by going back to school while 
they work. The Employee Educational Assistance Act will make permanent 
the tax exclusion for employer-provided educational assistance under 
section 127 of the Internal Revenue Code. By doing so, it will remove 
the penalty part-time students face in the form of higher taxes when 
their employers provide educational assistance.
  Mr. President, this bill's sponsor, Senator Moynihan, said it well: 
This is a very effective program which requires no bureaucracy and 
which administers itself. Employers and employees arrange for the 
educational assistance, and the Government's role is to stay out of the 
way. For example, MSE Technologies Inc. in Butte, MT, provides 
assistance to its employees who are working on undergraduate or 
graduate degrees. For MSE this is a wise investment in its employees 
and helps to keep the company competitive. With section 127 in place, 
employees can receive up to $5,250 annually in tuition reimbursements 
from their employer without paying additional taxes. Without section 
127, employees are taxed on the educational assistance they receive. 
This tax is exactly the wrong message to send to businesses and their 
employees trying to stay ahead.
  Section 127, which first went into effect in 1979, will expire in 3 
months. The provision has been extended numerous times, and it has 
widespread support. But the uncertainty of the provision's future has 
been disruptive to workers and made planning ahead difficult. The full 
potential of its benefits to workers and employers is not being met, 
and it won't be until we make it permanent. Let's make helping American 
workers stay competitive a top priority.

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