[Congressional Record Volume 148, Number 111 (Thursday, September 5, 2002)]
[Senate]
[Page S8307]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HUTCHINSON (for himself, Mr. Gregg, Mr. Kyl, Mr. Craig, 
        Mr. Murkowski, Mr. Allard, and Mr. McCain):
  S. 2911. A bill to repeal the sunset of the Economic Growth and Tax 
Relief Reconciliation Act of 2001 with respect to the modifications to 
education individual retirement accounts; to the Committee on Finance.
  Mr. HUTCHINSON. Mr. President, I am pleased to rise today to make 
permanent a provision included in last year's tax bill, the Coverdell 
education savings accounts. Congress took an important step last year 
in providing real options for parents to save for their children's 
elementary, secondary, and postsecondary educations. It is important 
now that we ensure that these options do not disappear in the future.
  Coverdell education savings accounts provided a new way for parents 
to save for their child's education. Accounts were increased to a 
maximum of $2,000, and parents can now use the tax-free savings for not 
only a college education, but also for elementary and secondary school 
expenses, including tuition, books, computers, and tutoring. Earnings 
on contributions to this plan are tax-free due to the tax bill that was 
passed last year. Now, it is time to continue this commitment to our 
children.
  Parents who want to open an education savings account this year for 
their child who is five years old have no guarantee that those accounts 
will exist beyond 2010. Last year's tax bill, as we know, sunsets in 
2010. But for this program, parents need to be assured that money they 
are saving now will be available for college tuitions in 2011 and 
beyond. With the cost of higher education rising faster than family 
income, we need to ensure that these saving tools will be available for 
years to come for families who are preparing for their future and being 
smart about their money. The average cost of tuition and fees between 
the 1989-1990 and 2001-2002 school years rose by 8 percent a year at 4-
year private colleges and 10 percent a year at 4-year public colleges, 
while family income rose by only 5 percent annually during that same 
time period.
  Parents should have the assurance that accounts that are started now, 
and that would not be tapped into for ten to fifteen years, would still 
be around at that time.
  I have started education savings accounts for my grandchildren, who 
are all infants and toddlers, and I want to know that they will be able 
to use this money years down the road for elementary or secondary 
schools or for their college education.
  We need to make this benefit permanent now to ensure savings 
incentives for years to come.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. REPEAL OF APPLICABILITY OF SUNSET OF THE ECONOMIC 
                   GROWTH AND TAX RELIEF RECONCILIATION ACT OF 
                   2001 WITH RESPECT TO MODIFICATIONS TO EDUCATION 
                   INDIVIDUAL RETIREMENT ACCOUNTS.

       Section 901 of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 is amended by adding at the end 
     the following new subsection:
       ``(c) Exception.--Subsection (a) shall not apply to the 
     amendments made by section 401 (relating to modifications to 
     education individual retirement accounts).''.
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