Recently President Obama announced a plan to end the tax breaks associated with popular 529 college savings plans. According to the New York Times
The idea was to end one tax break…and plow that billion-dollar savings over 10 years into a far larger expansion of another tuition tax credit aimed more squarely at the middle class.
However, President Obama came under fire from House Speaker John Boehner, former Speaker Pelosi, states and other politicians for ending what is perceived as a middle class tax break.
The opposition has caused President Obama to drop the idea. According to a White House spokesperson
“Given it has become such a distraction, we’re not going to ask Congress to pass the 529 provision so that they can instead focus on delivering a larger package of education tax relief that has bipartisan support, as well as the president’s broader package of tax relief for child care and working families”
Obama Relents on Proposal to End ‘529’ College Savings Plans