House Passes 'Family Savings Act': Savings Plan Bill for Unborn Children Goes to Senate
- News out of Washington,when it comes to the unborn
and families, the housepassed a bill that would allow
for the funding of a 529education savings plan
for babies in the womb.
David Christensen with theFamily Research Council's
Government Affairs Officeis here to tell us more.
Welcome, David, thanks for joining us.
- Thanks for having me on.
- Tell us about thisprovision in the tax code,
which recognized the unborn.
- Well, it would be the firsttime that in the IRS code
a child would include an unborn child
and a provision was addedto the Family Savings Act
and Representative MikeKelly sponsored that bill
to expand the educationaccounts, as you said,
529 education accounts for dependents,
and that would children,including an unborn child.
So, that would let parents, for instance,
start a 529 education accountwhen they're pregnant.
It would allow grandparents to contribute
into a 529 education savingsaccount if their children,
if they decide and discover,
hey, we're gonna be grandparents.
So, it's really a pro-lifepolicy from the standpoint
of the tax code, it recognizesthe child is an unborn child,
and one interesting thing to note,
this really is not ananti-abortion provision,
this is really just apro-life and it is pro-family.
It allows parents andgrandparents to, you know,
start earlier for their kids' education.
- There's also good news relatedto adoptions, I understand?
Can you talk about that?
- Yeah, no, good question.
There's another provision in the bill
that this bill wouldeffectively allow parents
to take out of theirretirement accounts early,
penalty free, if it wasfor newborn children
or adoptive kids.
So, it's again, very pro-familypiece of legislation.
Right now, if you takeyour retirement money out
you'll get really clobbered by uncle Sam,
taking that out of yourretirement accounts early.
This would allow parents to do that
if they have newbornchildren or adopted kids.
It's very pro-adoption,pro-child, pro-family.
This is something that weat FRC strongly support
and I think pro-familyand pro-life individuals
around the country canreally rally behind.
- Tell us what it does forhome schoolers, the bill.
- Well, that's a good question, too.
In the tax reform packagethat became law last December,
that President Trump signed into law,
there was an effort toexpand education accounts,
these 529 accounts,
to include not onlypublic and private schools
for K through 12, but also home schoolers.
Unfortunately, thatprovision didn't make it.
The provision on home schoolingdidn't make it through
the Senate process, butit did include parochial
K through 12 schools.
This bill that the house just passed
would include home schooled children,
that way it's not biasingfederal tax policy towards,
you know, privateschools or public schools
or home schooling, it gets allparents an equal opportunity
to use those kids of accounts
for the education of their children.
This is, again, a verygreat piece of legislation
from a pro-family,pro-education standpoint.
- David, is this part of moretax reform and tax breaks
for Americans, what elseis part of this bill
or in the works?
- Well this was one of three bills
that the house just passed,sent it over to the senate,
and, as you've already discussed,
the senate's pretty busy right now
with the nomination process,
but it may take up a tax bill.
The other tax bill that I think
people would be interestedin is it extended,
permanently extended theindividual tax rate reductions
that last year's tax reformpackage put into effect.
It was, I think it was eightyears that the lower tax rates,
individual rates, because of budget costs,
this bill would actuallymake them permanent
and 10 democrats, I think, voted for it,
republicans voted for it,we'll see if the senate
takes it up, this is another pro-growth,
pro-family type of policy.
And then the third billwas business innovation,
that bill passed as well,letting small businesses
basically get better taxbreaks so they can innovate,
create more jobs and help our economy.
- And quickly, back to thefirst bill, remind our viewers
of the name of it andhow you think it'll do
in the senate.
- It's the Family Savings Act,
that's Representative Kelly's bill,
I think it's a bill thatthe senate could pass.
There certainly might be somequibbling over whether or not
it should define anunborn child as a child,
for the purposes of 529 accounts,
but I do think that there'sa lot of support for the idea
that these accounts are reallygood for education policy,
for parents and familiesand I think, ultimately,
constituents need to weighin with their senators
and I think put pressureon them to support
this type of policy.
- Alright, David Christensen
with the Family Research Council,
thanks for your time, sir.
- Thank you for having me on.