I can't wait to tell my boss that Steven Mnuchin says we're all getting a $4,000 payrise.
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Talk now of partial deduction remaining anyhow. Does that mean Collins will vote for it?Comment
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With the economy doing well, that's quite something.GallupNewsVerified account
@GallupNews
Trump Job Approval: Approve 34% (-2); Disapprove 60% (+3).Comment
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I think this is in addition to what we know about Kushner, isn't it?The Associated PressVerified account
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BREAKING: AP sources: Ex-deputy national security adviser KT McFarland is Trump transition official referenced in court documents who discussed US sanctions, response to Russia with Flynn.Comment
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What are the chances the House will reject it?Comment
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The house is going to reject the Senate version as-is, so they can then go to conference. But they're going to vote for whatever final monstrosity the two chambers manage to combine. There aren't enough California, NJ and NY (and no Mass or CT) Republicans to vote against the elimination of the SALT deduction.
I wonder how McCain is going to feel about amendments added by scrawl, not going through committee.Comment
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I’m struggling. This feels like hell.Comment
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How does this work? Who even checks that the money eventually goes on what the tax break was for?At midnight, vice-president Mike Pence arrived in the chamber to break a tie on an amendment offered by senator Ted Cruz that allows parents to start savings accounts to fund tuition at private and religious K-12 schools known as 529 plans. The provision prevailed.Comment
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When would these changes actually come in? Start of 2018/19 financial year?Comment
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I don’t understand the first question.
The idea is that the changes to current law will apply as of 1 January 2018, even if they don’t enact a final bill before then.Comment
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I presume he means how is it verified that money saved in the accounts goes to the specified purpose.Comment
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Exactly what GY says.Comment
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When you have an educational expense to make, you request to transfer the money from the 529 and have it wired directly to the school.
I think it's also possible to withdraw money directly from a 529, then the bank/investment house who you have the 529 with sends you a form to fill out attesting that the money was received and that it will be used to pay for qualified educational expenses. Then it just becomes an audit risk if you withdraw the money and decide to buy a new 4K TV with it or something like that.Comment
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That's right.
Deposits into, and withdrawals from, the account are reported to and monitored by the tax authorities (reporting is often by both the individual and the financial institution holding the account).
Do you not have tax-advantaged savings accounts in the UK? I had thought that they were reasonably common in advanced economies.Comment
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The ones I'm aware of just limit when you can take money out but don't monitor where it goes.
I'm sure religious and private schools will enjoy jacking up the fees by whatever the taxpayer is contributing. I know I probably have an elevated view of US secularism, but isn't there some kind of issue with this sort of thing?Comment
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This is all good "populism", no doubt. When the rustbelt asked for jobs back, they meant jobs in private and religious schools.Comment
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I suppose the system must be similar for the Lifetime ISA, but other than that, tax advantaged savings are generally purposeless - the restrictions are on how much and how you can save, rather than what you can spend it on.Comment
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What Reed said earlier. This is absolute hell.
Any chance of them paying a price in the mid terms, or will there still be a sugar high then?Comment
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There are people that are opposed to things like this, but it's not a major issue. This new 529 expansion seems less awful to me than school vouchers being able to be used for private religious schools.Originally posted by Tubby Isaacs View Post
Though the really crazy thing in the 529 plan is to allow for 529 investments to be used for homeschooling. That does seem to open up things to a lot of tax fraud and I'm assuming that the IRS will be looking at those expenses very carefully.Comment
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Tubbs, these accounts have been around for tertiary education (including vocational schools) for almost twenty without producing such effects to any meaningful degree.Comment
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So I'm guessing it's still going to be "ridiculous that you need an accountant to file your tax" after all this? Funny how they kept saying that before.
I'm surprised there wasn't that effect, Ursus. There's going to be a big temptation for some private schools not to use the subsidy to parents to raise prices, so that the parents are still paying what they were out of their own pocket as before.Comment
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Homeschooling sounds a proper fraud opportunity, Inca.
I've got a classics degree, as you probably know. Can I say I'm teaching your kids Latin, refund you, not have a lesson and we have a drink on the taxpayer. Do that once a week, it'll add up. Are they going to get your kids in and test their Latin?Comment
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Assuming that it is actually enacted, the “value” of the benefit to any particular household is going to be dependent on how much they invest, where they live, and their particular tax posture at the time the funds are withdrawn. And that assumes that the entire school population would participate, which is certainly not the case now.
It isn’t like a rebate, voucher or credit, in which the whole population gets the same fixed sum.Comment
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Tubbs, private tutoring is not what is meant by “homeschooling” here.
It refers to cases in which children are taken out of the public system and literally taught at home by their parents, most commonly using materials developed by fundamentalist Christian sects. You should develop some basic “godly” Latin texts for the DeVos clan.Comment
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