State Treasurer Lynn Fitch disappointed by Obama's plan to tax college savings

State Treasurer Lynn Fitch disappointed by Obama's plan to tax college savings

MISSISSIPPI (WDAM) - This is a news release from the Mississippi Department of Treasury

?State Treasurer Lynn Fitch responded today to President Obama's proposal in the State of the Union address to roll back tax-free earnings for 529 plans that were enacted in 2001 for new contributions.

"I am extremely disappointed by this proposal," stated the Treasurer. "In the State of the Union address, the President stated that our country has seen the highest amount of college graduates in recent years. This, in part, is attributable to college savings programs. Research shows children with a college savings account are seven times more likely to attend college, compared to children with no dedicated account. In Mississippi, we have one of the best 529 plans in the country with annual state tax deductions up to $10,000 for single filers and up to $20,000 for joint filers. Taking away 529 tax plans' advantages may discourage people from saving for college – exactly the opposite of what we should do. President Obama's 529 plan tax grab is just more of the same old failed attempts at redistribution of wealth. The government should not be penalizing families who have prepared and saved for their children's future."