Many middle class American parents invest in 529 College Savings plans to help defray skyrocketing higher education costs for their children. The Obama administration is proposing that the earnings on those savings, currently allowed to be withdrawn and used for qualified educational expenses tax-free, be taxed as income for any future amounts invested. This plan will increas taxes on the middle class, decrease the amount of money available for education costs, and increase reliance on student loans, putting our kids more deeply into debt.
Requesting this proposal be withdrawn, keeping 529 account earnings tax-free, and thereby encouraging parents to keep saving and investing in their kids' futures.