Salmon: School Choice Education Savings Account Act a Good Investment
Washington—Today, Rep. Matt Salmon (AZ-05) released the following statement on the introduction of his newest education-focused legislation, the School Choice Education Savings Account Act:
“Last night in the State of the Union address, President Obama said, “Research shows that one of the best investments we can make in a child’s life is high-quality early education.” One of the ways we can truly invest in our children’s education is to provide parents with more flexibility, including the expansion of tax savings accounts for their children’s education from kindergarten through college.
“As a Member of the House Committee on Education and the Workforce, I take to heart President Reagan’s invaluable words about school choice. He said, “Choice represents a return to some of our most basic notions about education. In particular, programs emphasizing choice reflect the simple truth that the keys to educational success are schools and teachers that teach, and parents who insist that their children learn.”
“In honor of School Choice Week, I introduced legislation that will offer parents the ability to use 529 tax savings accounts for qualified K-12 expenses as well as college expenses. By offering this flexibility to parents, they can save and invest in their students’ whole education from kindergarten through college. This will provide parents more choices of schools, supplemental educational opportunities and necessary equipment for their children. When parents are given greater flexibility in school choice, children win.”
Currently, the majority of states provide tax incentives for contributions into 529 college savings plans. The federal government allows similar incentives for educational savings for both K-12 and postsecondary education through the Coverdell ESA program. The Coverdell program, however limits the amount one can contribute annually as well as the age one can make qualified expenditures. My bill expands the language in IRC Section 529 to include K-12 qualified educational expenses, which effectively removes such limitations. This legislation offers parents the same tax savings for K-12 expenses that are available for college.
Read the bill HERE.
Rep. Matt Salmon (AZ-05) serves on the House Committee on Foreign Affairs as Chairman of the Subcommittee on the Western Hemisphere. He is also a member of the House Committee on Education and the Workforce.
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