President Obama briefly, very briefly, suggested ending 529 plans, which are tax-free college savings accounts. The savings from ending those plans would fund his free community college proposal. He had to back down, because Republicans said that ending 529 was a direct hit on the middle class.

Economists can’t agree on the definition of the middle class. America’s median income is $53,046 per year. Depending on the economist, a middle class family can make between $35,000 to $100,000 per year.

According to the New York Times, even in the highest end of the middle class — a $100,000 per year income — few are able to put $14,000 aside annually in 529 accounts for their kids. 80 percent of the tax benefit of 529’s go to families that earn more than $150,000. 70 percent of the benefits go to families that earn more than $200,000. [edited for clarification]

In contrast, Obama’s community college plan was aimed at lower earning families.

Do we need to seriously rethink access to higher education?

UPDATE: Note that I have edited this post somewhat. I still would like to know the average yearly income of families that have fully funded 529s for two children.