Posted: | January 22, 2015 03:54 PM |
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From: | Senator Matt Smith |
To: | All Senate members |
Subject: | State Tax Return PA 529 College Savings Account Designation |
In the near future, I plan to introduce legislation which will create a checkbox on the state’s income tax form that designates a refund amount to be deposited directly into a 529 college savings plan. The PA 529 aims to make college more affordable for families. By promoting this plan we will stress the importance of saving for college, help citizens maximize their college savings, and encourage more individuals to take advantage of the plan’s benefits. According to the College Board, the average cost for tuition and fees at four-year public institutions has increased nearly 51% over the last 10 years (after adjusting for inflation). Therefore, it has become more important than ever to find new and innovative ways to save for college. Allowing taxpayers to automatically have a portion of their income tax refunds deposited into their PA 529 plan is one such innovative approach that we should consider. I hope you will join me in encouraging our citizens to save for college by co-sponsoring this important legislation. If you have any questions, please call my office at 717-787-5839. --- Pennsylvania has some of the highest costs for public, private and community college education in the nation. Pennsylvania funds public higher education at approximately 50 percent of the national average. In Pennsylvania, an estimated 71 percent of students graduate with debt, with the average being $32,258 per student. This bill is part of the multi-faceted College Access Plan (CAP). CAP is a comprehensive package of legislation designed to improve student access to higher education, reduce student debt and jump-start Pennsylvania's economy. --- |
Introduced as SB105