[Congressional Record Volume 144, Number 31 (Thursday, March 19, 1998)]
[Senate]
[Page S2290]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       EDUCATION SAVINGS ACCOUNTS

  Mr. COVERDELL. Mr. President, I thank the majority and minority 
leader for efforts to bring to resolution the ability to deal with this 
education proposal. I do want to make one comment for which there was 
not sufficient time in the 15 minutes allotted to each. Mr. President, 
in the final minutes of the last half-hour allotted to our debate 
before the vote, once again I heard the suggestion that the amount of 
tax benefit that would accrue to these 14 million American families 
that the Joint Tax Committee feel would take advantage of these 
education savings accounts is minimal and insignificant. Of course, I 
find it ironic that we would be operating under Presidential veto 
threats and five filibusters for something perceived to be so 
insignificant.
  What these arguments fail to measure is the other information from 
the Joint Tax Committee. One says 14 million families will use this; 70 
percent of them will be families with children in public schools; and 
in the first 4 years, these families with, I admit, just a little tax 
incentive, will save voluntarily about $5 billion. In over 8 years it 
will exceed $10 billion. That is not insignificant. That is putting 
billions of all new money behind improving education in America.
  The Joint Tax Committee says about half of that will go to students 
in public schools and half in private. That may be. They have not 
evaluated the fact that sponsors, churches, corporations, friends, 
neighbors, and grandparents can also contribute to the account. The 
value of that has yet to be interpreted.
  The other argument was that this account tends to benefit the 
wealthy. The Joint Tax Committee says 70 percent of it goes to families 
of $75,000 or less. But I think you have to step back and understand 
that the governance of these accounts--who can use them, which is 
pushing towards middle income and lower--is identical, I repeat, 
identical to the formula that was adopted by the other side and signed 
by the President for savings accounts for higher education. There is no 
difference.
  So, I find it ironic that we would be arguing about this benefiting 
someone who they do not think should receive the benefit when it was 
just fine and dandy when it was signed on the White House lawn last 
fall. It is the same.
  I guess the piece that is forgotten in this debate over how much is 
saved is they only focus on the interest saved, which is marginal. But 
they forget that it is the interest on a big piece of principal, and 
that for most families who open this savings account, the net effect of 
their savings will be 50 to 100 percent greater than the average family 
is saving in America today.
  If nothing else was done at all, isn't it a good idea to cause 
Americans to save billions of dollars? But, in fact, it won't be just 
saved. This money is going to go to help children.
  So far, this filibuster--and I will stop with this, Mr. President--
this filibuster would keep 14 million families from opening a savings 
account; 20 million children from benefiting from it; in the first 4 
years, $2.5 billion going behind kids in public schools; $2.5 billion 
going behind kids in private schools; 1 million workers who will 
receive benefit from their companies to extend their education; 1 
million students who would have a tax advantage who bought prepaid 
tuition in 21 States; 250,000 graduate students who would now become 
eligible for employer-paid continuing education; and 500 schools won't 
be built because it makes new financing available for school districts 
across the whole land to build schools, and we are filibustering that 
kind of growth.
  I am very hopeful that the work of the two leaders over the weekend 
will untie this knot and we can get on to being a good partner for 
families with children in schools in America. We sure need to do it. I 
yield the floor.
  Mr. DeWINE addressed the Chair.
  The PRESIDING OFFICER. The Senator from Ohio.

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