[Congressional Record Volume 143, Number 156 (Saturday, November 8, 1997)]
[House]
[Page H10351]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               MIDDLE-CLASS TAXPAYERS NEED IRA EXPANSION

  (Mr. SAXTON asked and was given permission to address the House for 1 
minute and to revise and extend his remarks.)
  Mr. SAXTON. Mr. Speaker, I have spoken on a number of previous 
occasions on the need to expand IRA accounts. Today I would like to 
cite the need for middle-class parents to save for college education as 
an important reason for further IRA expansion.
  Earlier this year, I introduced a bill to expand IRA income caps and 
deductions to permit penalty-free withdrawals for a number of purposes, 
including college education. And I am very pleased that the tax bill we 
passed last summer lifted some of the income caps to benefit more 
middle-income families.
  Although good progress has been made in the expansion of IRA 
eligibility for college expenses, much more is needed. The main problem 
is that IRA deduction ceilings remain, and have remained so for some 
decades, at $2,000. It is inadequate. The solution is to increase IRA 
deduction. My legislation would increase it $500 annually for 10 years, 
ending up with a $7,000 cap. Perhaps a more aggressive schedule could 
even be kept and it would be possible if current budget trends do 
result in a budget surplus.

                          ____________________