CHARLESTON – West Virginia State Treasurer John Perdue is joining with the National Association of State Treasurers (NAST) and its affiliate, the College Savings Plan Network (CSPN), in opposing President Barack Obama’s proposal to tax earnings on college savings accounts.
Last week in his annual State of the Union address, President Obama outlined a plan to roll back tax-free earnings for 529 education savings plans that were enacted in 2001.
“I am extremely disappointed that President Obama would target working-class families who are trying to save for higher education. Instead of stifling savings, we should encourage parents to save responsibly for future educational expenses,” said Treasurer Perdue, who serves as chairman of SMART529’s governing board.
Perdue says taxing college savings will force families to have a greater reliance on student loans.
“With tuition costs rising and student loan debt currently around $1.3 trillion, saving for higher education has never been more important,” Perdue said.
According to CSPN, research shows that children with a college savings account are six to seven times more likely to attend a four-year college, compared to children with no dedicated account.
A SMART529 account may be used for higher education expenses at most colleges, universities, vocational, technical and trade schools around the nation.
West Virginia’s SMART529 College Savings Plan is a qualified tuition program issued by the West Virginia Prepaid College Tuition and Savings Program Board of Trustees, chaired by State Treasurer Perdue.
For more information on West Virginia’s SMART529 College Savings Plan, visit www.SMART529.com or call 1-866-574-3542.