[Congressional Record Volume 145, Number 114 (Thursday, August 5, 1999)]
[Senate]
[Page S10420]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAYH:
  S. 1518. A bill to amend the Internal Revenue Code of 1986 to provide 
an income tax credit to long-term caregivers; to the Committee on 
Finance.


              EDUCATIONAL TAX RELIEF FOR AMERICAN WORKERS

   Mr. BAYH. Mr. President, I am pleased to introduce 
legislation today that will help thousands of American workers with the 
financial burden associated with sending a daughter or son to college. 
In this climate of labor shortages, U.S. companies are looking for 
innovative ways to maintain and attract a dedicated and qualified 
workforce. Some companies have creatively turned to providing college 
scholarships for their employees' children. My legislation would allow 
employees to deduct these scholarships from their gross income. Under 
current law, an employee generally is not taxed on post-secondary 
education assistance provided by an employer for the benefit of the 
employee. My bill would extend this treatment to employer-provided 
education assistance for the employees' children, up to $2,000 per 
child.
  As many of my colleagues know, employer-provided education assistance 
is considered an integral tool in keeping America's workforce well 
trained and equipped to deal with the changing face of the New Economy. 
Current law not only allows companies to keep an up-to-date labor pool, 
but also allows many workers to move from low-wage, level positions up 
the economic ladder of success. Extending tax-free treatment to the 
children of employees not only will help working families, but will 
contribute to our nation's competitiveness in an increasingly dynamic 
global economy.
  My legislation is very simple. It allows employees whose companies 
provide educational scholarships for employees' children to exclude up 
to $2000 from gross income per child. An employee may not exclude more 
than $5,250 from gross income for employer education assistance. This 
is the limit established under Section 127(a)(2) of the Internal 
Revenue Code for employer education assistance. In essence, there would 
be ``family cap.'' Workers could deduct a $2,000 scholarship for their 
child and could also exclude up to $3,250 of educational benefits for 
themselves, however, the combined amounts could not exceed $5,250.
  I believe that Congress should do all it can to help families with 
the soaring costs of higher education. In today's economy, American 
companies are no longer looking purely for a high-school diploma, but 
require that their workers have some sort of post-secondary education 
or training. Many working families struggle in providing this basic 
start which will help their children get well-paying jobs.
  This piece of legislation is also a modest proposal. The Joint 
Committee on Taxation has scored this provision at $231 million over 10 
years. I look forward to working with my colleagues in making sure that 
this provision is fully offset in a responsible manner.
  Mr. President, I am pleased to lend my name to this initiative, for 
this legislation has been already introduced in a bi-partisan manner in 
the United States House of Representatives by Representatives Levin and 
English. This bill has the support of over 60 Members of the House and 
I plan on working to ensure that this bill receives the same sort of 
bipartisan support that its companion in the House enjoys.
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