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Wealthy families that send their children to private school can now shield large amounts of gains from taxes, depending on the amount of time and principal that can amount to large sums over time. Once again this benefits the wealthy that send their children to private schools that can cost $20,000 a year just for high school. That is money that will be lost revenue for the state and damage public education.
Even prior to this the benefit was largely for wealthy families for use at the college level, this should never have been expanded.
Shouldn’t we put a 50% tax on going to college? Not doing so takes away tax funds that can be used to help people.
I’m with Goodnight; we should place massive taxes on getting an education so the government has more money to spend.
It makes sense. Why should the savings plan just be for college? Isn't K-12 education just as important, if not more so? It's disappointing that the dems were able to defeat the homeschooling provision. Why the war on homeschooling?
One function of public schools is indoctrination. But your question was probably rhetorical and you probably already knew that.
This is terrific news. More school choice without the mess of public school system charter schools. The NEA will hate this. Good.
Quote:
Originally Posted by BugsyPal
Tucked into that fast tracked tax "reform" bill was a provision sponsored by Ted Cruz that allows those participating in 529 college savings programs to use those funds for private K-12 education. It survived the committee process and thus became law.
What this means is the rich/wealthy (ones most likely to have the income to divert into 529 savings schemes *and* file taxes that allow them to deduct the savings) will get essentially to divert public money to private education. The "public" part comes from the savings on personal income taxes that are a result of the deduction.
Religious groups (mainly Orthodox Jews and Catholics), along with wealthy households long have pitched for some sort of local or federal tax deduction for K-12 tuition, now they have it.
You really think $10K/year is going to change the bracket of "the wealthy" ?
No, this benefits the middle class folks that send their kids to private school or considered doing it.
This actually makes sending their kids to private school more affordable.
The NYT article seems very biased..that only "the wealthy" send their kids to private school.
Here's some FACTS about the 529 plans:
Less than 3% of Americans have 529 plans for their kids.
The median income of these participants is $142K/year.
The average balance in these accounts is $19K.
You really think $10K/year is going to change the bracket of "the wealthy" ?
No, this benefits the middle class folks that send their kids to private school or considered doing it.
This actually makes sending their kids to private school more affordable.
The NYT article seems very biased..that only "the wealthy" send their kids to private school.
Here's some FACTS about the 529 plans:
Less than 3% of Americans have 529 plans for their kids.
The median income of these participants is $142K/year.
The average balance in these accounts is $19K.
The above FACTS are courtesy of the GAO office.
Good points. We have been lectured for months now about how 150-300k is considered middle class in coastal blue states, and how they would be devastated from losing SALT deductions. So middle class dems should be jumping for joy that the Cruz amendment was passed. Now they can save for K-12 private school tuition tax free.
What's hilarious is how dems like to move the bar that defines who is wealthy, depending on the narrative they are trying to sell.
You really think $10K/year is going to change the bracket of "the wealthy" ?
No, this benefits the middle class folks that send their kids to private school or considered doing it.
This actually makes sending their kids to private school more affordable.
The NYT article seems very biased..that only "the wealthy" send their kids to private school.
Here's some FACTS about the 529 plans:
Less than 3% of Americans have 529 plans for their kids.
The median income of these participants is $142K/year.
The average balance in these accounts is $19K.
The above FACTS are courtesy of the GAO office.
So, first let me say that this change does not bother me. I don't care. But...I was a middle class parent who paid to put two kids through private school (Grades 4-12) because my public schools were pretty bad. I paid a lot of money. I was paying so much money that I actually didn't have a dime to put toward a 529 plan so that college would be paid for. I live in a high COL area and was making a dual income of about $140K per year with two kids in private school.
So while this change will benefit people who actually have the 529s that are funded, most people in my circle would have never had the ability to use it. It really is for the very upper middle class or the wealthy who can fully fund those 529s from the start.
So, first let me say that this change does not bother me. I don't care. But...I was a middle class parent who paid to put two kids through private school (Grades 4-12) because my public schools were pretty bad. I paid a lot of money. I was paying so much money that I actually didn't have a dime to put toward a 529 plan so that college would be paid for. I live in a high COL area and was making a dual income of about $140K per year with two kids in private school.
So while this change will benefit people who actually have the 529s that are funded, most people in my circle would have never had the ability to use it. It really is for the very upper middle class or the wealthy who can fully fund those 529s from the start.
Nobody in your circle was making 150k?
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