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Obama Scraps Tax Hike on College Savings

Bipartisan opposition sinks 529 plan.

President Obama will drop his plan to raise taxes on the popular college-savings accounts known as 529s. He was facing criticism from both parties for including a provision to remove 529s in his presidential budget. The announcement of his decision came hours after House Speaker John Boehner demanded the president relent on 529s “for the sake of middle-class families,” the group Obama focused on in his State of the Union address. A White House official said the plan was dropped because, so Congress “can instead focus on delivering a larger package of education tax relief that has bipartisan support.”

Read it at The Wall Street Journal

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