Other People's College Savings

Via Divorced one like Bush at Angry Bear, Obama economic advisor Austan Goolsbee argues that 529 accounts—a tax free savings vehicle for college tuition and other education expenses—are little more than a giveaway to fund managers, who charge higher rates for managing the 529 funds than they do for retail funds. Good times.

Comments

[Stephen]

There just always has to be an angle. There always has to be something, some rotten thing to sweeten the pot ever more more more.

It wasn't enough to have this entirely new market open up for them. No, our politicians and their corporate masters have to make sure they get more money out of these wonderful accounts than any other.

[ikl]

Simple tax codes are good. It would be nice to have a big tax reform if the Dems win the White House (or even if McCain does). Complexity is not only inefficient, it makes it easier to enact these sort of sneaky give-aways to wealthy special interests.

[Adrock]

Good catch. I can't believe that article was from 2002! I was planning on using 529s for my children, but I'll clearly have to be extra carefull to make sure I get the best bang for MY buck.