Video: Obama pushes permanent educational tax credit

Here’s a clip from President Barack Obama’s appearance in the White House Rose Garden today, where he urges Congress to make a $2,500 college tuition tax credit permanent.

(The education section starts at the 1:38 mark.)

He’s talking about the American Opportunity Tax Credit permanent, which was included in the $814 billion economic stimulus bill he signed last year, and has an estimated cost of $58 billion over 10 years. It’s worth $10,000 over four years to students, and will help families invest in their children’s future.

He had proposed making the tax credit permanent in his 2011 budget proposal, but Congress has not acted on his request. It’s set to expire at the end of the year.

With Obama in the video are three families who have taken advantage of the tax credit.

He says in the clip:

“There’s an educational arms race taking place around the world right now. Cutting back on education would amount to unilateral disarmament. We can’t afford to do that.”

According to the Associated Press, a Treasury Department analysis says 12.5 million people used the credit last year, for an average of about $1,700.