Senate Journal: Page 1419: Tuesday, April 25, 1995

         Lastly, let me say on education, I simply dont believe that we
    should be cutting education to reduce the deficit or pay for tax cuts. I
    dont believe that.  I just dont believe that.

         So my view -- my view on this is that the way to save money is to
    give every university in the country and every college in the country
    the right to do what Iowa State has done -- go to the direct loan
    program, cut out the middle man, lower the cost of loans, save the
    taxpayer money.

         I am strongly opposed to charging the students interest on their
    student loans while theyre in college.  That will add 18 to 20 percent
    to the cost of education for a lot of our young people.  Well have fewer
    people going to school.  We want more  people going to school.  I think
    that is a mistake.

         I believe if were going to have a tax cut, it should be targeted to
    middle class people and to educational needs.  I believe strongly we
    should do two things more than anything else.  Number one, give more
    people the advantage of an IRA, which they can put money into and save
    and then withdraw to pay for education or  health care costs, purchase
    of a first-time home, or care of an elderly parent tax-free.  Number
    two, allow the deduction of the cost of education after high school to
    all American middle-class families. Now, that, I think, will make a
    difference.

         This is very important for you because, remember, we have a smaller
    total tax cut, if we target it to the middle class, we can have deficit
    reduction without cutting education.  We can have deficit reduction
    without having severe cuts in Medicare.  Govemor Branstad said today,
    one of our biggest problems is the unfairess of the distribution of
    Medicare funds.  You are right.  Its not fair to rural America.  But
    theres a lot more coming, and more than you need to have if we have an
    excessive tax cut that is not targeted to education and to the middle
    class.

         So that, in brief, is the laundry list of the new federalism -- the
    things you need to decide on.  I do not believe these issues I have
    spoken with you about have a partisan tinge in Des Moines.  They need
    not have one in Washington.

         But I invite you, go back home -- this is being televised tonight
    -- go back home and talk to the people you represent, and ask them what
    they want you to say to your members of Congress about what we do in
    Washington; what you do in Des Moines; what we do in our private lives;
    what should be spent to reduce the deficit; what should be spent on a
    tax cut; what should be in a block grant; and where should we stand up
    and say weve got to protect the children of the country. These are great
    and exciting issues.

         Believe me, if we make the right decisions -- if we make the right
    decisions, the 21st century will still be the American century.

         Thank you all, and God bless you.

Iowa General Assembly

Index: Senate Journal (76th General Assembly: Session 1)

© 1995 Cornell College and League of Women Voters of Iowa

Comments? sjourn@legis.iowa.gov.

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