CNBC reported the story here.
Evidently the White House realized the idea was a non-starter when someone explained that the 529 plans would stop being funded, meaning there would be insufficient revenue to fund alternatives, as reported here:
'On "Power Lunch," [Joe] Hurley [of savingforcollege.com] said this tax will deter people from using 529 plans. "Taxing 529 plans won't pay for any other initiative because people will no longer be using 529 plans," he said. "You can't raise revenue when you don't have any contributions going into these plans."'
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Well DUH!
