[Congressional Record Volume 149, Number 145 (Thursday, October 16, 2003)]
[Extensions of Remarks]
[Pages E2067-E2068]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     EDUCATION SAVINGS ACT OF 2003

                                 ______
                                 

                           HON. JON C. PORTER

                               of nevada

                    in the house of representatives

                       Thursday, October 16, 2003

  Mr. PORTER. Mr. Speaker, today I am introducting the ``Education 
Savings Act of 2003''. This legislation will change current tax law to 
make it clear that employers can make tax-deductible contributions to 
employees' education savings accounts, such as 529 or 530 accounts.
  Saving for our children's higher education has become increasingly 
important as we continue to see the cost of college education steadily 
rising. As a Member of the Committee on Education and the Workforce I 
have been afforded the opportunity to participate in many hearings 
outlining some of the difficulty student's face with the rising cost of 
tuition. Tuition is outpacing the rate of inflation, increases in 
family income, and even increases in State and Federal financial aid--
which have grown tremendously in recent years. Planning for our 
children's future education by setting up savings accounts is essential 
now more than ever.
  I have seen first hand the effects that can occur from rapidly 
increasing tuition rates. The State of Nevada has one of the lowest 
numbers of college graduates per capita. Setting up savings accounts 
early on for higher education can displace some of the burden created 
by the high costs of attaining a college education.
  The United States tax code offers options for families to SAVE--to 
Set Aside for the Value of Education. Two such options, the 529 College 
Savings Plan and the 530 ``Coverdell Accounts'', have benefited 
thousands of students and have helped their families meet the rapidly 
escalating costs associated with attaining a college degree. 
Unfortunately, current tax law penalizes workers for accepting 
contributions from their employers to these accounts by considering it 
earned income to the employees.
  The ``Education Savings Act'' will clarify that any amount 
contributed to these education accounts will NOT count towards an 
employee's taxable income.
  By allowing employers to contribute to 529 and 530 accounts without 
the contribution

[[Page E2068]]

being considered taxable income, I hope to increase the ease with which 
we send our children to college. Employers are able to provide health 
and retirement benefits and it is time for businesses to be able to 
provide an education benefit as well without penalizing the employee. 
The ``Education Savings Act'' is another effort to help defray the ever 
growing costs of attaining a college education.
  Congress should do all we can to encourage our youth to pursue higher 
education opportunities and eliminate any barriers.

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