WebFire;1699050 wrote:Tax the people who actually plan for college, and give it free to those that don't.

Gosh a ruddies, give to those that have and screw those in need.
But experts said 529 plans, which are used by seven million families and hold $217 billion, disproportionately benefit the most affluent families, which can afford to save. More than 12 million accounts are in circulation, according to Strategic Insight, an investment consultant that tracks the industry. If more affluent families can afford to start saving early and often, the compounding over time enables them to avoid paying more taxes, especially those in higher tax brackets.
“They primarily provide a subsidy to people who would save in other forms anyway,” said Sandy Baum, a senior fellow at the Urban Institute.
Even if many middle-income families save in 529 plans, an administration official, referring to the Federal Reserve’s Survey of Consumer Finances, said that more than 70 percent of the account balances for 529 plans and another option known as Coverdell Education Savings Accounts are held by families with incomes over $200,000. (Those figures also include health savings accounts, but still provide a reasonable best estimate, the administration said.)
A report from the Government Accountability Office found that a small percentage of families use 529 plans and Coverdell accounts. And those that do use them have a median income that is three times the median income of families without the accounts.
http://www.nytimes.com/2015/01/23/your-money/obamas-proposed-changes-to-529-college-savings-plans-would-reduce-benefits.html?_r=0