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WASHINGTON – Rep. Virginia Foxx, R-N.C., today spoke out in opposition to President Obama’s plan to raise taxes on popular college savings accounts.

“Paying for college is hard work, and it’s getting more difficult as tuition and fees continue to increase at rapid rates,” said Foxx on the House floor. “Luckily American families have an investment tool known as a 529 plan to help them save for their child’s college education.” 

Since 2001, students have been able to withdraw earnings from 529 investment plans tax-free if the funds are used to pay for qualified higher education expenses. Last week President Obama proposed taxing those withdrawals and treating the earnings as student income, which would hurt a child’s chances of receiving financial aid.

“With student loan debt surpassing credit card debt, it is incredibly irresponsible of the president to take away this valuable tool that millions of American families use to save for college,” Foxx said. “House Republicans will fight this attempt to raise taxes on hardworking American families. We want to encourage, not discourage, families from investing in their child’s future.”

Watch Foxx’s floor speech at http://youtu.be/MZpO2JRGF3U. 

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U.S. Rep. Virginia Foxx is currently serving her sixth term as the representative of North Carolina’s 5th Congressional District and is the elected Republican Conference Secretary. Dr. Foxx is the chair of the House Education and the Workforce Subcommittee on Higher Education and serves as Vice Chair of the House Rules Committee.