Thank you, Obama, for dropping the stupid plan to tax 529s

[davidn3600]

Why should people be punished for saving for college?

The Obama administration said it would drop a plan to tax so-called 529 college savings accounts, after the proposal sparked widespread criticism over its potential impact on the middle class.

The move followed a public call by House Speaker John Boehner (R., Ohio) on Tuesday for the White House to withdraw its plan. Calls also were coming privately from leaders of the president’s own party. House Minority Leader Nancy Pelosi (D., Calif.) pressed the case for dropping the plan in conversations with senior administration officials aboard Air Force One, as she flew with the president from India to Saudi Arabia, according to a person familiar with the matter.

A White House official said late Tuesday: “Given it has become such a distraction, we’re not going to ask Congress to pass the 529 provision.”

http://news.yahoo.com/obama-drops-plan-to-raise-taxes-on--529--college-savings-accounts-232937566.html;_ylt=AwrTWVUrK8hU61QAylTQtDMD

[NoJusticeNoPeace]

1. uh huh

Fortune: Wealthy Receive Six Times The Tax Break On 529s That Families "Earning Less Than $100,000 Per Year" Do. Fortune's Jean Chatzky highlighted that families earning more than $150,000 per year receive "six times the [tax] break by families earning less than $100,000" per year:

http://mediamatters.org/research/2015/01/23/what-media-miss-on-the-tax-breaks-in-obamas-fre/202247


the wealthy get their way yet again, i see

[Adrahil]

3. I'm middle class. And my daughter will benefit form that tax break.

I'm glad that provision was stripped. Plenty of other ways to get the required revenue. Raise the freakin' capital gains tax on the rich for one.

[Javaman]

4. +1000! nt

[The Green Manalishi]

6. agreed

Just because the rich use something doesn't mean it's a bad idea. It's a pretty good vehicle for even modest saving by barely middle class people. Yes, it's *mostly* used by the wealthy, but that in no way means it's a bad idea or abusive.

[pansypoo53219]

2. add a means test.

[Ykcutnek]

5. Disappointed in him backing down from that.

I'm getting so sick of high-income folks wearing their working class costumes.

If you can afford to squirrel away enough money for a 529, you're not being taxed enough.

[SickOfTheOnePct]

7. Sorry, but that's just BS

Just because a family can put away a couple of hundred dollars a month for future college expenses doesn't mean that they're not being taxed enough.