GOP lawmakers oppose Obama proposal to boost education tax credit, cut college savings plans
President Barack Obama's plan to scale back the tax benefits of college savings accounts is running into opposition from Republicans in Congress.
GOP lawmakers say they have no intention of raising taxes on families trying to save money for their children's education.
Obama's plan would reduce the tax benefits of future contributions to the popular 529 college savings plans. Current accounts would be grandfathered, so existing funds could still grow and be withdrawn, tax-free.
The additional tax revenue would be used to help expand and make permanent a $2,500 tax credit that families can use for education expenses. Under current law, the tax credit is scheduled to expire at the end of 2017.
Obama laid out the proposal as part of this week's State of the Union address.