The super cool 529 expansion was stripped from the final tax bill. Also, better tax plan calculator

I was going to do a effort post on the whole thing, but I just can’t.  I’ve vented enough about how it’s shocked me that so many Republicans are against more flexible spending of education dollars by parents.  But they are.  Some of them are even whiny that it wasn’t RESTRICTED MORE to homeschoolers only.

Congratulations, Dems.  Y’all play to win and know when to hold ’em.

http://taxplancalculator.com/

That is a better tax plan calculator.  Only about 1 in 20 taxpayers will see an increase in their taxes, nearly all on the higher income side.

 

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4 thoughts on “The super cool 529 expansion was stripped from the final tax bill. Also, better tax plan calculator

  1. The Washington Post made it sound like public schools got hosed while private school parents got the biggest benefits. Not asking you to do a more detailed post, but do you have a link to a more balanced comprehensive piece on what this bill actually means for education?

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    • No, I totally don’t, because the whole thing was misreported even on the right. The short version is that there was an attempt to expand the 529 so that parents could essentially get a tax break on the money they were already spending for educational expenses of any kind.

      It also made it smart for couples starting out to load up 529s for children in advance of K-12, since there was going to be a ton more flexibility at transferring the money back and forth. And it was going to give complete flexbility to transferring money over from ABLE accounts for special needs children. It was a great start on letting families take the money they use for education and get a little more oomph out of it.

      Anyway it was stripped out of the bill, so too bad for us all.

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  2. http://www.patheos.com/blogs/janetheactuary/2017/12/lets-not-demonize-private-schools.html

    A fun read if you’re inclined to that supports the provision but for other reasons.

    FWIW, I spent all of my primary and secondary schooling in Catholic schools which, IMO, presented a far better environment for me versus the local public schools*. Heck, even my dad would have cheered on the idea of getting a tax deduction for sending his kids to Catholic schools too given how much he was paying at the time. Regardless, I think the optics on this looked bad, it seemed like a weird give away to rich families sending kids to expensive private schools versus help for families that home school children or send their children to parochial schools. I suspect some type of cap probably would have worked out better, or an even larger child tax credit until the age of 21 would have had better optics politically.

    flexible spending of education dollars by parents

    It’s weird. I’m probably the most charter friendly person that I know**, and from hanging out with you ladies I’ve become far more sympathetic to home-schooling parents. Yet, I’m still uneasy about stuff like this because it feels like an assault on the public schooling system versus any real desire for actual educational choice.

    *I’m still mixed on the idea of state supported Catholic schools. Taking state money, especially in the US, means taking on the regulations and burdens of the State, but when I ponder about having children, moving to Canada to provide Francophone friendly Catholic schools at a fraction of the cost of a US parochial and diocesan high school sounds ideal.

    **In NYC, charters are the de facto replacement for parochial schools since they’re free, and basically the best way of separating your children from “bad children” at school if you can’t afford a private school. A few of them even occupy abandoned Catholic schools. Sadly, they only exist in urban areas in minority neighbourhoods which means that suburban parents lack a similar alternative if they’re displeased with the quality of the local schools in the few cases where that happens.

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  3. Only about 1 in 20 taxpayers will see an increase in their taxes, nearly all on the higher income side.

    The irony is that if I was able to claim the property taxes on my parents, I would pay more in taxes because of the crippling of SALT deductions.

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