While the White House still thinks taxing college savings is a good idea, Republicans are committed to expanding 529 plans and rewarding responsibility.
- Modernize 529 plans by adding computers to the list of qualified expenses.
- Allow funds to be re-deposited without taxes or penalties if a student withdraws early for medical reasons and obtains a refund from the school.
- Removes unnecessary paperwork burdens that date back to before withdrawals from 529 plans became tax-free.
These reforms – which the House will vote on next month – mean more incentives and peace of mind for middle-class families who work hard and play by the rules. Learn more about the aptly-numbered H.R. 529 here.
“The idea we ought to tax college savings plans was bizarre, and I’m glad the president changed his mind,” Speaker Boehner said last night on Fox News’ Special Report. “Frankly, he ought to come out and support the bill that was introduced yesterday that would expand college savings accounts for middle-class families.”
At a time when Americans owe more than $1 trillion in student loan debt, President Obama and his party are obsessed with finding ways to raise taxes on hardworking Americans. That top-down approach hasn’t worked, and won’t work. Only Republicans are offering common-sense solutions to lower costs and boost wages for middle-class families.