Pete Domenici: “this is a very important education bill before us today. It builds upon the education savings accounts enacted last…”

“this is a very important education bill before us today. It builds upon the education savings accounts enacted last year. It expands the amount of money that can be saved and expands its uses to include K-12. About 14 million individuals are expected to sign up for these accounts by the year 2002. Contributions can be saved to cover college expenses or used when needed to pay for a wide range of education expenses during a student's elementary and high school years. Examples of eligible expenses include text books, computers, school uniforms, tutoring, advanced placement college credits, home schooling, after-school care and college preparation courses. A tutor can make the difference between success or a student falling hopelessly behind. A computer can open the world to a child. Children growing up in homes with computers will be the achievers. I am afraid children growing up in homes without computers will be at a disadvantage. This bill will allow money from an education savings account to be sent on a computer, software, lessons on how to use the computer. The bill has several solid worthwhile provisions. It raises the limits on annual contributions to an education IRA from $500 to $2,000 per year, and allows accounts to be used for K-12 expenses. The bill allows parents or grandparents to make the contribution in after-tax money each year. The accounts would grow with interest, and withdrawals for educational expenses would be tax-free.”