SHOW FULL TEXT
Around the state to where you live w video brings you regional news Philip GOP Majority Leader John Flanagan says the state needs to cut income taxes , property taxes in energy taxes in the midst of a brutally cold winter. And he says some tax cuts for middle class New Yorkers that begin to take effect this year . Need to be speeded up . We actually watch salary tax cuts that he’s talking news stories clarity it’s W R V old public media .
Support comes from INSURANCE AUTO AUCTIONS car donation program wherever you reside in upstate New York. INSURANCE AUTO AUCTIONS will pick up your surplus vehicle and your tax-deductible donation will support WR video more information at 315-699-2622 and from WR videos cornerstone society this hour we recognize Cindy and Dave Kirby a Syracuse . For more information about becoming a cornerstone member visit WR Vo.org/support .
Their education show continues on the Capitol press room. We’ve all heard about the reduction in the salt deduction . But there’s another tax change at the federal level that has New York state educators concerned it’s about changes to what’s called the 5-29 tax free college savings program 5-29 is a great way to save for a child’s college education , but the new tax overhaul expands 5-29 and enabled people to pay also for tuition at K through 12 private and religious schools . So what’s the big deal . Right , well , joining us with more is former teacher and principal of the year . Carol Burris , who is currently executive director of the network for Public Education Foundation Carol welcome back our area .
I’m great , Harry.
I’m fine , why is using the 5-29 program to save private or religious education K through 12 a problem.
Well , if you , if you just sort of step back and look at as a whole landscape. It’s part of a bigger trend that’s happening right now across states and and that’s the privatization of education by taking tax dollars and starting to funnel down to private schools to home-schools and to everything pretty much other than public schools on you have states that have something called education savings accounts where if you agree to not send your child to a public school , you can get 90% of what the public school but instead to do something else on the education educational that’s not even particularly well supervised you have tax credits . You have vouchers and you know it’s part of of of a plan 2 eventually in my opinion , get rid of public education . As we know it and replace it with a system of backpack funding and this is something that is very important to Secretary of Education that’s evolved something that Donald Trump has pledged his or his support for as well and what happened was sort of at the last hour Ted Cruz of Texas introduced us and it was quickly stuffed into the bill and , when it reached the Senate they needed Mike Pence to be a tiebreaker because there are so many senators that are opposed to this idea strongly all of the Democrats are and also a few Republicans symbol , what you have at the federal level is is bad enough , the addition of that off , but it also has tremendous ramifications for the state .
Well , let me let me unpack this slowly. I just wanna make sure that we’re getting everything clearly out to the listener . The fear here , number one is that it will road public education and to that extent , it sounds a lot like the education investment tax credit that religious schools have been pushing for years .
It is similar to know you know. Oh absolutely , absolutely .
You know what happens in states the the word voucher doesn’t go over well so through education tax credits through different deductions schemes. People are trying to . To put it in place , I mean when you think about that concept of a tax credit , what you’re really talking about . In many states is EU get a credit . So you may have . Sometimes they do it through a scholarship account were by businesses are wealthy individuals make a donation to a scholarship account and then they get all the money they had curfew because it’s a credit or a substantial part of the money back because it’s a credit , and then that money is taken and it’s given to families to use for private school tuition .
So the other fear here is that it will road the tax base that fund public schools and you were just about to get into why that was.
Yeah , yeah. In New York speed it is of particular concern because we’re talking about a lot of money . New York State is one of 33 states that when it comes to 5-29 accounts allows a state tax deduction or credit as well as the savings that would accrue at the federal level in New York state . It’s a tax deduction and that tax deduction for a couple is up to $10,000 a year .
So the legislature would have to do anything in order for families to get the benefit from the tax overhaul regarding 5-29.
Very , it’s very interesting , New York State is one of the states in which a legislature would not have to do its thing , however , and this is some good news that just came out , the New York State Department of Taxation and Finance says that it believes that the monies cannot be used for executed 12 tuition expenses that they would not be can.
It impacts on trying to give.
To be oceans. Yeah . And this is , this is brand new , apparently when the statue was written very quickly in Washington when the code was went quickly in Washington . EDS : there is some language there about qualified institutions that was not changed and so New York State Department of Taxation is hanging its hat on that , and rightly so . I mean there was a report in The New York Times that saddens ad if the families were sending their children to private schools actually took this deduction that it would reduce the tax base in New York state by $3 billion .
That’s a lot of many they have heard about that. Yeah .
Now my guest CEO. This is what’s going to happen if somebody’s gonna challenge .
Say on New York State Department of Taxation and Finance. That was not the intent , and then it will be , it will remain to be seen how it all shakes out , but this is going to affect a lot of states Indiana is gonna be hard hit so if Illinois . There are some states that don’t even have a cannot I mean York state at least has a cat . There are some states that don’t even have a cap on these deductions .
So , so if , for example , if it that tax and finances correctly matchsticks sticks. Could the legislature in New York . Change the tax code to allow okay I would delivering okay because there are some very big advocates for things like the education investment tax credit and since this is so similar I can see those same advocates trying to make that happen over 5-29 .
Oh , I think so , I mean I think that’s without a doubt. So you know even even with this ruling , it would not surprise me if next session they put it forward and say , hey , wait a minute , let’s take a look at the federal intensive it is and this should also include that now , you know , Governor Cuomo’s been very interesting because he was for it and then it was last session he was against it , where she will fall . I do not know the Assembly would not be in favor of .
The state assembly. Yeah .
Yeah it’s it’s it’s just I think a very very frightening time for public education. I mean we were talking about a lot of dollars and this combined with salt . It is without a doubt it’s going in the eating fewer dollars for a public education and this whole move that has been growing , I mean we are right in the middle of school choice we where every possible way schooling whether beyond mine schools with a terrible resolve where there her it be home schooling , whether it be voucher schools they do not help children anymore than than public schools . In fact , they tend to lose ground charter schools . All of these things or are celebrated because the thinking behind it , you know , starting with Milton Friedman , who proposed all of this is that we should not have a public education system that each child should receive money and and shop .
And that’s the whole backpack education sad funding is is is the cutesy name for its facility who now.
We are actually running at a time but there , we have about 20 seconds. Carol but the the 5-29 plan . If you do use it for K through 12 you’re gonna forfeit some benefits of compounding ahead of college so people should remember that . Yes .
Yeah , absolutely it. Yeah , you can only spend it in one place , but you know it’s it’s it’s a pair . It’s also , it’s a pass through which is really what it .