Problem
The cost of post-secondary education continues to rise and so does student debt. Accessible workforce training and college education are essential to achieving financial security for individuals and economic growth for our state. The existing tax incentive for post-secondary education savings is a flat deduction that has been utilized disproportionately by higher-income earners. Current account holders have higher incomes (just 12% earn less than $70,000) and are more likely to be white and reside in metropolitan areas. We are trying to improve the accessibility of post-secondary training and education by fixing our state’s tax incentive for saving. We can make our state more equitable while also boosting the economy & helping state budgets.
Solution
The Education Savings Credit will refund up to $300 per year to Oregon taxpayers, and will equal a percentage of the dollars they save in College Savings Plan accounts, on a sliding scale based on financial need:
-Contributors making less than $30,000: 100% refund up to $300
-Between $30,000 and $70,000: 50% refund up to $300
-Between $70,000 and $100,000: 25% refund up to $300
-Between $100,000 and $250,000: 10% refund up to $300
-More than $250,000: 5% refund up to $300
Research shows that having a College Savings account in a child’s name makes them 3x more likely to enroll in job training or college, and 4x more likely to complete it. We can reduce the barriers to accessibility and make a dent in the crushing load of student debt.
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