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...

Like walking in a neighborhood full of pickpockets and purse snatchers, living under the Obama administration should leave all Americans worried about what will be pilfered from them next.In one of the most hypocritical moves yet—and that’s saying something—by a man who exhaled a lot of hot air in recent weeks, including during the State of the Union speech, talking about the importance of a college education, President Obama is now proposing to end tax-free withdrawals from 529 college savings accounts, diminishing (or perhaps even eliminating)their attractiveness as savings vehicles and thereby reducing incentives for millions of American families to...

LOS ANGELES, Jan 22 (Reuters) - President Barack Obama's proposal this week to roll back tax benefits for so-called 529 plans exposes a fundamental disagreement about who is benefiting from these state-sponsored college savings plans. 529 plans are sponsored by states and run by investment management companies. Withdrawals from the accounts can be used tax-free to pay for qualified education expenses at any college or university in the country, such as tuition, fees and books. Supporters of Obama's proposal point to a 2012 government report showing the plans being used by less than 3 percent of all U.S. families and...