K-12 529 Provision Sows Controversy, Confusion

(from U.S. News & World Report) How to ensure the last-minute revision to the massive tax overhaul passed just before Christmas allowing money from 529 college savings plans to pay for private K-12 education helps families across the economic spectrum? Already, affluent families have benefited disproportionately from the tax-advantaged vehicles for college savings. While many proponents of tax policies supporting school choice cheered the 529 expansion to K-12 education, few believe that many lower-income families will be able to take advantage of it. 

Wrote Andrew Rotherman: "Then the debate will shift to how to make the provisions more equitable. In other words, after inserting an inequitable provision into the tax code its champions can now slip onto their opponent's flank and argue to make that provision more equitable by expanding it in various ways. A provision to allow home school parents to use 529s was removed from the tax bill because of a budget rules issue; expect it to be back soon, along with other ideas."

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