Titled “Senate Takes Up Fixes To 529 College Savings Plans,” the April 29 article discusses the politics behind a noncontroversial bill to enhance 529 college savings plans. According to the article, the push to pass this bill arose in the wake of a previous, widely unpopular suggestion by President Obama to begin taxing 529 plan earnings as the money is withdrawn – a move that would eliminate the overriding financial incentive for using such plans.
In quoted and paraphrased material, McGuireWoods partner and McGuireWoods Consulting senior advisor Russell Sullivan predicts Republicans would get behind the bill as a way of reminding the public of President Obama’s earlier recommendation to “carve back” college savings plans. He does note that passage of the bill could slow if Democrats, who also like the enhancements, decide to add other provisions to the bill, such as an expansion of the American Opportunity Tax Credit. Subscribers can read the full text of this article at www.forbes.com.