Free Republic

Proponents of school choice are sharing in President Trump’s first major legislative victory, the signing of the Republican tax reform bill on Friday. Under the to-be-updated tax code, thanks to a provision introduced by Sen. Ted Cruz, R-Texas,, parents will be able to use 529 plans, a form of savings account, to pay not only for college, as is currently the case, but also toward expenses for K-12 schooling, including private school tuition. The provision originally included home schooling costs, but was stripped from the final bill after the Senate parliamentarian ruled that part ineligible under budget reconciliation rules —...

So it actually happened. Just last month, it was not certain that the Senate would go along with the House of Representatives’ proposal to let families use 529 college savings plans to pay for private school from elementary school onward. In a bill that offered many perks for the wealthy, the 529 provision was a particularly brazen giveaway. After all, it’s mostly wealthier people who can save enough to reap large benefits from the provision, which allows $10,000 in annual tax-free 529 account withdrawals for pre-college students starting in 2018. But it really did happen, and President Trump will soon...

Here’s a refreshing change of pace for you. Normally when we have to talk about politicians caving in on a position they’ve staked out, it winds up being the Republicans. This week, however, the collapse took place in the White House. Barack Obama had been pushing for what amounted to another tax increase by eliminating the 529 college savings program whereby parents could set aside pretax money for their kids’ education and not pay taxes on it upon withdrawal provided the money was used to pay for tuition. But in the face of bipartisan opposition and negative feedback from...

President Obama is pitching his new tax plan as a way to help the middle class at the expense of the rich. But middle-class savers are bound to notice if he achieves two of the White House’s stated goals—to “roll back” tax benefits of 529 college savings plans and “repeal tax incentives going forward” for Coverdell Education Savings Accounts. Both plans allow parents, grandparents or anyone looking to help fund a kid’s education to contribute after-tax dollars into accounts that grow tax-free. There is also no tax when the money is withdrawn, provided it is used for qualified educational expenses...

Taxing Section 529 tax-free education plans is a terrible, horrible, no good, very bad idea. Of all the lying, broken campaign promises,and studied burglary President Obama has committed over the past six years—seven really, if you count his first campaign—this has to be the worst. He who can’t help but toot his own horn (tooting his horn was his only moment of clarity in the whole State of the Union Speech), said this last night: Of course, the education race doesn't end with a high school diploma. To compete, higher education must be within the reach of every American. (Applause.) That's why we've ended...

President Barack Obama's State of the Union Address tomorrow proposes $320 billion in taxes over the next 10 years. Pretty much every new story is presenting it as "increasing taxes on the wealthiest" to pay for programs to help the middle class. That's bad enough. It's not like he's proposing increasing taxes to pay for fundamental government operations. It's just a wealth transfer to cover the "costs" of offering up tax credits to famillies with two working parents (screw you, stay-at-home moms and dads!). But beyond that, Americans for Tax Reform looked at the package and point out several ways...