To amend the Internal Revenue Code of 1986 to provide that income of a child which is to be used for the child's educational expenses shall be taxed at the child's rates and not the parent's rates.

Amends the Internal Revenue Code to provide that income from any property of a child shall not be included in the net unearned income of the child for tax purposes if such income is used for the child's educational expenses. Establishes an excise tax if such amounts are used for any purpose other than the taxpayer's educational expenses. Requires such amounts to be used before the end of the taxable year in which the taxpayer attains age 24.