POLITICAL NOTEBOOK
U.S. Rep.
Phil English, R-3rd, this week joined U.S. Reps.
Melissa Hart, R-4th, and Earl Pomeroy, D-N.D., in co-sponsoring a measure to make higher education affordable for Americans.The College 529 InVEST (Investment in Education Savings for Tomorrow) Act of 2005, would make permanent the tax-free treatment of withdrawals from Section 529 plans, such as the Pennsylvania Tuition Account Program.Named after the Internal Revenue Code section that describes them, 529 plans are a state-sponsored college savings plan that offer market-based returns depending on the type of plan chosen by the account owner.In 2001, Congress enacted an act which established a tax-free withdrawal from Section 529 plans for qualified higher education expenses.In addition, the new law created provisions that not only decreased the costs to administer the plans, but also made the savings accounts more convenient to use. These Section 529 reforms are due to expire Dec. 31, 2010.The College 529 InVEST Act of 2005 would make the tax-free treatment and simplified administrative rules permanent.The National Taxpayers Union this week recognized U.S. Sen.
Rick Santorum, R-Pa., for his consistent voting record to reduce federal spending, taxes and debt.The group on Wednesday presented Santorum, chairman of the Senate Republican Conference, with its Taxpayers' Friend Award.