ERIC Number: ED443190
Record Type: Non-Journal
Publication Date: 1998-Apr-17
Reference Count: N/A
A+ Accounts: More Educational Opportunity, Not More Bureaucracy [and] Executive Summary. The Heritage Foundation Backgrounder, Number 1172.
Shokraii, Nina H.; Youssef, Sarah E.
The "A+ Accounts" offer parents and concerned citizens a new way to invest in a child's education from kindergarten through 12th grade. Under this plan, families, single parents, or anyone earning less than $95,000 annually ($150,000 on joint tax returns) could deposit up to $2,000 per child in after-tax income into interest-bearing savings accounts each year. These tax-free funds could be used for any education-related expense, from books and transportation to special programs or private school tuition. The A+ Account program offers a tangible opportunity to parents to improve their children's K-12 education. In addition, the bill would allow parents to make tax-free withdrawals from state-operated tuition savings and prepaid tuition programs for their children's higher education expenses. The bill also contains two provisions on school building and repair: The first would free $3 billion in school construction bonds for public schools over the next five years. The second would expand from $10 million to $15 million the maximum value a school district could issue in tax-exempt bonds without having to comply with complicated IRS arbitrage rebate rules. The article goes on to list several Senate proposals which would strengthen A+ Accounts. (DFR)
Descriptors: Administrative Organization, Educational Legislation, Educational Planning, Elementary Secondary Education, Equal Education, Federal Aid, Local Legislation, Public Schools, School Choice, State Legislation, Tax Credits, Tuition Grants, Welfare Services
Heritage Foundation, 214 Massachusetts Ave., N.E., Washington, DC 20002-4999. Tel: 202-546-4400.
Publication Type: Opinion Papers
Education Level: N/A
Authoring Institution: Heritage Foundation, Washington, DC.