Obama's SOTU proposal to tax 529 college-saving plans went over like a lead balloon; R R Reno offers modest proposal for taxing university endowments instead.
"The Obama administration dropped its call for taxes on 529 college savings plans. These tax-preferred savings vehicles allow families to put away money to pay for Junior’s college expenses when the time comes. The outcry against the administration’s proposal was not surprising, and it makes no sense to undermine the program. Nevertheless, the administration’s desire to rethink the funding of higher education is sound and to be encouraged. We have lots of perverse incentives in the current system that bloat costs. We also have a system that overemphasizes the classic four-year undergraduate residential model. To this end I propose a progressive approach that should appeal to conservatives." -- R. R. Reno, First Things
