President Obama should get on board with House Republican legislation passed this week expanding college savings plans, Rep. Jim Renacci (R-Ohio) said in the weekly Republican address.
{mosads}”Why would we make saving for college even harder? We talk all the time about rewarding people who work hard and play by the rules — well, that’s what 529 plans are,” said Renacci, who touted his upbringing in a working-class union family.
“They empower families to set up accounts for their children, right from when they’re born, and then down the line, they can use that money tax-free on books, fees, tuition and room-and-board,” he added.
This week, the House passed a bill 401-20 loosening restrictions on tax incentives and expanding the college savings plan program, after Obama scuttled a proposal to eliminate tax breaks for the plan in his annual budget.
Obama does not oppose the House bill, White House press secretary Josh Earnest said this week, though would prefer something that affects more than 3 percent of American families. Around 12 million use the 529 plans, but the White House has argued they benefit wealthier families.
Under the plan, Renacci notes, computers qualify as expenses, administrators have less paperwork and families can re-deposit college funds tax-free.
“Together, let’s make sure that 529 plans will be there for middle-class families for years to come, because we all know that a good education leads to greater opportunity and a stronger economy,” Renacci said.