Treasurer Lemoine advocates for nationwide Tax Parity and an end to parochial tax breaks for state-sponsored 529 College Savings Plans

July 12, 2006

For Immediate Release
July 12, 2006 Contact: David Lemoine, 207-624-7477

Treasurer Lemoine advocates for nationwide Tax Parity and an end to parochial tax breaks for state-sponsored 529 College Savings Plans

Treasurer Lemoine today advocated for nationwide adoption of Maine’s tax-parity approach to college savings plan contributions and withdrawals. Lemoine, speaking to a national assembly of state treasurers and college savings plan administrators in West Virginia, reminded participants that 529 plans are state-sponsored investment vehicles that must be managed and augmented to support the greater public good. He said:

“State Treasurers do students and their families no favors by driving them into parochial 529 plans when, absent special tax-breaks, other 529 plans may be a better fit for them. Our goals as publicly accountable plan sponsors and plan administrators should be twofold: First, we should promote policies that enlarge and broaden college aspirations for all corners of society. Second, we should have plans that grow assets so that college becomes affordable for every plan participant. A nationwide open 529 Plan market with transparency and robust competition is the best way for to reach these goals. I urge every state to join Maine in putting the broad goals of 529 college saving plans above parochial support for our particular programs.”

Maine for years has adopted the federal policy of granting tax-exemptions for education related withdrawals and recently adopted a state-level income tax deduction for contributions to any 529 plan. Maine’s 529 College Saving Program is the NextGen program, administered by the Finance Authority of Maine with investment oversight provided by the State Treasurer.