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For Parents

ESAs are Taxable Income … Death Knell for S 556?

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We have been preaching this for years now … ever since the “paid” special interest advocates pushed for a direct refundable parental tax credit … these payments are likely TAXABLE INCOME!!!

This week the Republican Attorney General & Republican Commissioner of Education found that the newly passed Education Savings Account (ESA) program in Tennessee would be TAXABLE INCOME to the parent recipients. (NOTE: Although the Tennessee ESA is currently the law, it was a major debacle getting it passed. It won by one vote, a Republican that only voted yes if they promised to keep ESAs OUT of his district … so the program is only in 2 out of 95 counties in TN and the school districts get reimbursed 100% for each kid that leaves … so the state is paying DOUBLE for those kids in the program … so it wasn’t “really” passed and like Nevada, our bet is it will be killed before it is ever implemented – costing taxpayers millions in the process.)

But you don’t have to take our word for it … watch and read the articles yourself.

Reporter Richard Ransom asks …. “Were lawmakers mislead? Were they lied to?” Our experience … YES!!!

https://newschannel9.com/news/nation-world/official-tennessee-school-vouchers-are-federally-taxable-income

The IRS rules are pretty simple … if you get a check from state government … you must provide that person with an IRS Form 1099-G … period!!!

What does this have to do with South Carolina? Well, do you get a refundable parental tax credit? Well, is that taxable income? We think it is … and that is why we opposed it. SC legislators can make the payment free from SC state income tax … but they have NO influence on making it FEDERALLY tax free. That is the reason NO OTHER STATE IN THE NATION has such a large refundable parental tax credit. Others states are not stupid … they know (like Tennessee has figured out) that these direct payments from state government is a tax problem. There are a few states with small $100 or $200 refundable education tax credits … and yes they are taxable too … but that is nothing like an $11,000 refundable parental tax credit. That is a HUGE tax bill.

And as other articles point out … this impacts the poor the most. Yes wealthy parents may get a $37% federal income tax bill … yes, keep hoping you don’t get audited by the IRS … but for low income families that might be subject to income limitations on their benefits, food stamps, ACA healthcare … this extra “income” may cost you more than you actually receive.

SC Legislators are aware of this problem … we have told them … but the “paid” special interest sing a different story. Well, what do they have to say now? Guess who has been WRONG almost every time … the “paid” special interest advocates. #FollowTheMoney!!!

Remember Palmetto Promise Institutes “Bigger. Better. Faster.” proclamation … read it HERE. These guys have no idea what they are talking about.

https://www.commercialappeal.com/story/news/2019/11/19/memphis-senator-opposes-school-voucher-program-update/4239159002/

“This is a worst-case scenario for students, their families, the school districts and the state.” – TN STATE SENATOR RAUMESH AKBARI

For Parents

SC DOR Director Memo – BOARD VIOLATED LAW!!!

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We exposed these legal violations by the (not so) Exceptional SC Board in February 2020 … raised the ALARM that Chad Connelly was lining his pockets with scholarship funds intended for YOUR CHILDREN … and we now finally have the confirmation of what happened.

We sent a Freedom of Information Act (FOIA) request to the SC Department of Revenue and they provided us with this MEMO from Director Hartley Powell.

It clearly states the LAW …. and confirms that the (not so) Exceptional SC Board was violating the LAW.

Seven days latter … this “resignation” email was sent out by Board Chairman Tom Persons.

We will continue to track and PUSH this issue such that the “misappropriated” money is RETURNED … and the GUILTY PARTIES (which includes the entire BOARD of Exceptional SC) are held accountable. 

#ReturnTheMoney!!!

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For Parents

H 3899 Bill Filed … a JOKE!!!

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Well, the legislators leading this fiasco showed their agenda AGAIN last week … and it is NOT ABOUT KIDS!!!

What did they do???

They “rewarded” the (not so) Exceptional SC Board with a QUADRUPLED INCREASE in their Administrative Fees …

And worse … they are removing the LEGISLATIVE APPOINTMENT language so the BOARD WILL BE PERMANENT … and legislators will be able to say “there is nothing we can do”?!?!?!

It is getting to a BREAKING POINT … they are getting DESPERATE … and this bill is perfect evidence of that desperation!!!

And if you think that is all bad … this is a FIRST IN THE NATION …

… they want the SC Department of Education to “donate” $12 MILLION to (not so) Exceptional SC. SAY WHAT???

Read it … it is right there in the title of the bill (picture up top) … or read the bill here

Insanity!!!  Another square peg in a round hole. ANYTHING except what every other state does …

#FollowTheMoney!!!

“Who” is behind it?

Rep. Jason Elliott (R – Greenville)

Rep. Shannon Erickson (R – Beaufort)

https://www.scstatehouse.gov/member.php?code=0539772663

It is personal folks … and these legislators care more about their personal vendettas and their “monied” SPECIAL INTEREST supporters … than they do about YOUR KIDS!!!

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For Parents

SCHOLARSHIP GRANTS UPDATE!!!

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Well, we are getting reports from parents and school officials that the checks that are going out are approximately 20% of tuition.

Why would (not so) Exceptional SC not tell parents how much specifically they were receiving … or even generally how much … we can only speculate … but we are hearing the amounts are approximately 20%.

The home stretch of the 2020-2021 school year is here … the promised funding is not … there is not even a plan in place on what to expect …. other than the pitiful 20% no communications whatsoever!!! Politics over children … AGAIN?

We offered a solution … to raise the full 2020 $12 million by 12/31 …. and next year’s $12 million in early January 2021.  That was $24 MILLION by 1/31/2021!!! Well … they knew better … NOT!

Yet YOU lost $7.5 MILLION in 2019 … $8 MILLION in 2020 … and with the current fundraising pace … YOU will lose even more in 2021.

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