economy
February 27, 2026
Enough with the savings accounts
Texas recently became the 18th state to create a K-12 education savings account that lets families spend state-funded dollars on private tuition and other educational items. Florida has two such programs, while Tennessee has three.
TL;DR
- Texas is the 18th state to implement a K-12 education savings account program.
- Numerous specialized savings accounts exist for education (529 plans), health, and retirement, each with intricate rules.
- Proposed legislation aims to create even more tax-advantaged savings accounts, like the Invest America Act and Home Savings Accounts.
- Most benefits from these savings account programs go to the wealthiest households, as they have the most to gain from tax shielding.
- Savings accounts are not an effective solution for helping struggling families afford basic needs like housing, healthcare, and education.
- The proliferation of specialized savings accounts violates principles of simplicity, transparency, neutrality, and stability in tax policy.
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