WASHINGTON, D.C.– In light of the recent report from the New York Times that President Obama will drop his proposal to tax college savings plans known as 529s, Congresswoman Lynn Jenkins (KS-02) released the following statement:

“Clearly the President was pressured from both sides of the aisle not to go forward with his horribly misguided proposal to tax an extremely popular college savings tools for middle class families. Had he succeeded, he would have removed a powerful incentive for families to save for their children’s education. While I am pleased the president will lift his proposal, I urge him to support my bipartisan legislation to expand and modernize 529 plans so more families have the opportunity to send their children to the higher education institution of their choice.”

Yesterday, Congresswoman Jenkins & Congressman Ron Kind (D-WI) introduced H.R. 529 to modernize and improve tax-free 529 college savings plans. To read more about H.R. 529, click here.

Politico reported:The bill would expand the current savings plans to include computers as qualified expenses, eliminate paperwork required when the funds are distributed and allow taxpayers to re-deposit refunds from colleges without taxes or penalties.