Only in the narrowest, short term sense will those people benefit. In the big picture, real life happens. When private school becomes more affordable, the private school tuition goes up. Parents become merely a passthrough for providing tax dollars to private school owners. My guess is they capture all of the tax benefits plus some, because:
1) Not all parents will save in a 529.
2) This is one of those areas where fear causes the market to behave irrationally (DON'T YOU CARE ABOUT YOUR CHILDREN'S FUTURE?!?!).
The past predicts the future, and university is a perfect model for what will transpire, with the exception being scale, because parents don't have nearly as much time to save for private school. How have affordability interventions worked out there?
