Q. How does Obama want to give college educations away? A. By - TopicsExpress

Q. How does Obama want to give college educations away? A. By taxing those families who saved for it. The terms of the White House proposal: Tax Increase on Families Saving for College Under current law, 529 plans work like Roth IRAs: you put money in, and the money grows tax-free for college. Distributions are tax-free provided they are to pay for college. Under the Obama plan, earnings growth in a 529 plan would no longer be tax-free. Instead, earnings would face taxation upon withdrawal, even if the withdrawal is to pay for college. This was the law prior to 2001.

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