BY PATRICK CROWLEY
The Cincinnati Enquirer
U.S. Sen. Mitch McConnell and U.S. Rep. Jim Bunning are urging President Clinton to sign a bill that would provide parents with a tax break on prepaid school tuition plans.
Mr. Clinton has pledged to veto The Parent and Student Savings Account Plus Act, which he has said would damage public schools. But in a letter, the Kentucky Republicans said the act would save families across the nation $1.5 billion.
The bill would expand tax-free savings accounts that Congress created last year to provide for college expenses. Families, employers and others could contribute up to $2,000 a year on a child's behalf, up from $500 in the original bill. Interest buildup and withdrawals would be tax-free, and the money could be used for expenses starting with kindergarten.
"I'm sure you'll agree, Mr. President, that making a college education accessible to our children is critical to achieving personal fulfillment and realizing professional potential for future generations," the lawmakers wrote.
"We urge you not to raise barriers to education with the stroke on your veto pen."
The expenses covered by the expanded savings accounts would include public school costs such as private tutors, home computers, supplies and transportation. Backers of the bill have said most of the families taking advantage of the tax breaks would have children in public schools.
"This legislation will help ease the skyrocketing costs of higher education," Mr. McConnell said in a statement. "This bipartisan legislation will help families save, tax-free, for their child's future."
But opponents emphasize that more than half the $1.5 billion in breaks over 10 years would go to people with higher incomes. The accounts are available to couples earning up to $150,000 and individuals up to $110,000.
Mr. McConnell and Mr. Bunning said in their letter that Kentucky residents have invested $7 million in the accounts, which were created under the Taxpayer Relief Act of 1997.
The Associated Press contributed to this report.
