[Congressional Record Volume 152, Number 68 (Friday, May 26, 2006)]
[Senate]
[Page S5335]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        COSPONSORSHIP OF S. 1112

  Mr. BURNS. Mr. President, I would like to lend my support to S. 1112, 
the College 529 InvEST Act of 2005, which I cosponsored today. A 
college education is more important today then it has ever been before. 
As the intrinsic value of a college education has increased, so too has 
the financial costs associated with it. In the last 10 years, the cost 
of a 4-year college education at a public institution increased 59 
percent, while in public institutions it has grown by 42 percent. This 
increased cost dramatically outpaces average family income growth 
during the same time period.
  It is not surprising that Montanans have expressed concerns about how 
they will pay such a hefty pricetag for their children's futures. It is 
our responsibility in the Senate to make saving for college manageable 
for many families who also struggle to save for their own retirement 
and may live from paycheck to paycheck. Federal programs can defray 
some of the costs, but this alone cannot pay the bills. Tax relief 
passed in 2001 permitted States to implement their own plans, creating 
a tax benefit for those families who chose to invest in them. Since 
1998, 12,539 qualified tuition program accounts total more than $146 
million in Montana alone.
  Without congressional action, the tax benefits of these plans will 
expire in 2010. Withdrawals made after 2010 will be subjected to 
taxation that means in just a little over 3 years from now, parents who 
invested in these 529 plans for the tax benefits will face an 
unanticipated tax liability. This sunset provision casts serious doubt 
on the likelihood a family would set up a 529 plan given such 
uncertainty. S. 1112 would make the tax provisions of these important 
plans permanent, providing much-needed certainty to parents and their 
children heading off to college in the future.

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