Obama Nixes 529 Tax Plan After Facing Bipartisan Criticism
Critics of Obama's proposal had argued ending 529 tax breaks would discourage college students from investing in those savings accounts.By Jay Strubberg | January 28, 2015
After facing criticism on multiple fronts, the White House says it has nixed a proposal that would've increased taxes on certain college savings accounts.
"So the verdict is clear. Middle-class economics works," President Obama said.
The savings accounts in question are known as 529s. President Obama alluded to his plan to levy taxes on them during his State of the Union Address.