Speaker Boehner Supports #SchoolChoice, Obama Drops Toxic Plan To Tax Middle Class 529 Savings Accounts

Speaker Boehner speaks for School Choice

Today in Washington, D.C. - Jan. 28, 2014:

The House reconvened at 9:00 AM today. This AM, the House has already consider and passed:  H.R. 351 (277-133 ) — "To provide for expedited approval of exportation of natural gas, and for other purposes."
The house in recess until 2 PM today.

Yesterday the House passed by Voice Vote:
H.R. 159 — "To stop exploitation through trafficking."
H.R. 181 — "To provide justice for the victims of trafficking."
H.R. 285 — "To amend title 18, United States Code, to provide a penalty for knowingly selling advertising that offers certain commercial sex acts."
H.R. 350 — "To direct the Interagency Task Force to Monitor and Combat Trafficking to identify strategies to prevent children from becoming victims of trafficking and review trafficking prevention efforts, to protect and assist in the recovery of victims of trafficking, and for other purposes."
H.R. 398 — "To provide for the development and dissemination of evidence-based best practices for health care professionals to recognize victims of a severe form of trafficking and respond to such individuals appropriately, and for other purposes."
H.R. 460 — "To direct the Secretary of Homeland Security to train Department of Homeland Security personnel how to effectively deter, detect, disrupt, and prevent human trafficking during the course of their primary roles and responsibilities, and for other purposes."

The House also passed:
H.R. 246 (411-0) — "To improve the response to victims of child sex trafficking."
H.R. 469 (410-0) — "To amend the Child Abuse Prevention and Treatment Act to enable State child protective services systems to improve the identification and assessment of child victims of sex trafficking, and for other purposes."

Yesterday Speaker Boehner supported "School Choice" speaking at at a rally on Capitol Hill for National School Choice Week. A former chairman of the House Education & the Workforce Committee, Boehner has been an advocate for school choice and the DC Opportunity Scholarship Program throughout his time in Congress. In remarks Boehner said, ". . . I’ve got 11 brothers and sisters, grew up working at my dad’s bar. And my parents sent all 12 of us to Catholic schools – I don’t know how they managed it, but I owe everything to that opportunity.

“When I got here in 1991, I wanted to help make sure every student had the same chance that I did. Because education is the great equalizer in America – it can lift up kids who would slip through the cracks. . . .

“This struggle won’t be won by my generation, but it will be won by yours. Through the Opportunity Scholarship Program, you’ve shown that students thrive when parents are empowered to pick the best schools. You’ve shown how great charter schools are – and how we need more of them. Because of you, we know that school choice can make anything possible. . . ."

The Senate reconvened at 9:30 AM today. Following an hour of morning business, the Senate resumed consideration of S.1, the bill to authorize construction of the Keystone XL pipeline. At 2:30 PM, the Senate will begin a series of up to 18 roll call votes on amendments to S. 1. By unanimous consent, each of these amendments will require 60 votes to be adopted. Twenty-four amendments have been voted on so far on this bill alone. In all of 2014, Democrat leadership permitted votes on only 15 amendments.

Today, ALG President Rick Manning issued a statement opposing passage of an amendment offered by Sen. Heidi Heitkamp (D-N.D.) that would extend the Wind Production Tax Credit for another five years. "Americans for Limited Government strongly opposes Senator Heidi Heitkamp's amendment to the Keystone XL pipeline bill that would extend the Wind Production Tax Credit for another five years. The Wind Production Tax Credit is just another example of the crony capitalism that runs rampant in Washington, D.C. distorting our nation's energy markets while encouraging the non-economically sustainable wind farming of America. After decades of being propped up by taxpayers, it is time for the mature wind energy industry to fairly compete in the marketplace rather than serving as a tax dodge for the wealthy."

The New York Times reported yesterday, “President Obama, facing angry reprisals from parents and from lawmakers of both parties, will drop his proposal to effectively end the popular college savings accounts known as 529s, but will keep an expanded tuition tax credit at the center of his college access plan, White House officials said Tuesday.

“The decision came just hours after Speaker John A. Boehner of Ohio demanded that the proposal be withdrawn from the president’s budget, due out Monday, ‘for the sake of middle-class families.’ But the call for the White House to relent also came from top Democrats, including Representatives Nancy Pelosi of California, the minority leader, and Chris Van Hollen of Maryland, the ranking member of the Budget Committee. . . .

“The move was an abrupt turn for the president, who had made the proposal during his State of the Union address only a week ago, a proposal he called part of his pitch for ‘middle-class economics.’ . . . Mr. Boehner said Tuesday that ‘529 plans help middle-class families save for college, but now the president wants to tax those plans.’”

The Times notes that “taking away the tax advantage of the 529 plan . . . proved to be politically toxic.”

The Wall Street Journal editors explain why: “The 529 plans put the power in the hands of parents. The political problem is that 529s have become popular with, well, the middle class; there were some 11.8 million accounts and the average balance was $20,671 as of last June.”

Senate Majority Leader Mitch McConnell was happy to see the president shelve this proposal. “I’m glad to see the President has dropped his plan to make it harder for middle-class families to save for college with 529s,” he said. “I fought to ensure these plans were tax-free at the federal level. Thanks to this incentive to save, millions of Americans use 529s to help prepare for college expenses. These are good plans that promote responsible savings. I’m not sure why President Obama would have sought to undermine them in the first place. It’s just good to see the president coming around to Republicans’ pro-middle class view in the end.”

If President Obama wants to continue this and take some positive action for the middle class, he could sign the bill authorizing the Keystone XL pipeline when it reaches his desk. The pipeline will create thousands of jobs and help increase the supply of oil, which ultimately contributes to lower gasoline prices.

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