Kevin Brady: “Chairman Johnson, thank you for your leadership on this issue and, Mr. Doggett, for your eloquent support. When American…”

“Chairman Johnson, thank you for your leadership on this issue and, Mr. Doggett, for your eloquent support. When American families are fortunate enough to have children, they often face an important decision: Can they afford to have one parent stay at home to care for the children or is it financially necessary that both parents continue to work outside the home? If they choose to have one parent stay home, it is often a great financial sacrifice that affects not only their day-to-day living but their retirement security as well. I believe the government should support their decision by encouraging them to save for their retirement by using the Spousal IRA tax provision which became law in 1996. This provision brings a measure of equality to the Code and allows parents to contribute to IRA retirement accounts whether they work outside the home or not. While the Spousal IRA provision was included in the Contract for America and the Contract with the American Family, it only exists today because of our dear friend and former Texas Senator, Kay Bailey Hutchison. Years ago, she recognized the unfairness of the Tax Code to those moms and dads who chose to stay home with their children, even if it meant missing out on the usual tax incentives enjoyed by those with outside jobs who were putting money away in a traditional IRA as a nest egg.…”