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*529 PLAN HIT* - WSJ's John D. McKinnon and Kristina Peterson: "A White
House proposal to trim tax benefits of popular college-savings accounts is
stirring opposition in Congress, and complicating negotiations over efforts
to streamline education tax breaks. The proposal, part of a tax plan
released by ... Obama over the weekend, would scale back a significant
break that Republicans generally want to preserve - taxpayers' ability to
use money earned in 529 college-savings plans on a tax-free basis.

"Administration officials said the proposal .. is aimed at offsetting the
cost of other changes, particularly a significant expansion of the American
Opportunity Tax Credit, which provides a tax break for higher-education
expenses of up to $2,500 per student. Currently, people can withdraw money
from the 529 accounts without paying taxes on the earnings. Under the Obama
plan, the gains earned on those investments would be subject to tax as they
are withdrawn to pay for education expenses." http://on.wsj.com/1Bd0HYP
<http://go.politicoemail.com/?qs=2da103df7c53c9364fec2ae4c3cb56fc0d5653941cdb84c9b72f1b2c02f4029d>


Eric D. Schwerin
eschwerin@rosemontseneca.com

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