[Congressional Record (Bound Edition), Volume 152 (2006), Part 7]
[House]
[Page 9723]
[From the U.S. Government Publishing Office, www.gpo.gov]




                      STUDENT SAVINGS ACT OF 2006

  (Mr. PASCRELL asked and was given permission to address the House for 
1 minute and to revise and extend his remarks.)
  Mr. PASCRELL. Madam Speaker, in 1999, when President Bush was running 
for office, he made a pledge to veto any tax increase. Well, last week, 
he did what he said he would never do when he signed into law a tax 
increase for our Nation's young people.
  This Congress passed and the President signed a bill that will triple 
tax rates for the teenagers with college savings funds. Under the new 
law, teenagers between the ages of 14 and 17 with investment income who 
had their long-term capital gains and dividends taxed at 5 percent, 
will now be taxed at 15.
  Interest that had been taxed at 10 percent will now be taxed at as 
much as 35 percent. So much for savings. So much for education. So much 
for hypocrisy. The bill passed last week and ironically is called the 
Tax Increase Prevention Act.
  Yet it increased taxes on students. And we have been insisting on tax 
cuts of billions of dollars to folks who do not need it. It is because 
of this outrageous tax increase that I have introduced the Student 
Savings Act of 2006, H.R. 5473. My legislation will be revenue neutral 
by effectively rescinding those tax cuts that go to those who make $1 
million or more.
  We should be giving our students financial incentives and not giving 
them tax increases.

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