Senator Peter Fitzgerald on Thursday called on Congress to "eliminate or sharply reduce" the layer of fees added onto 529 college savings plans by state governments because they undermine the tax advantage that product offers to investors.

He also urged Congress to simplify and improve fee disclosures, require 529 plans to provide at least the same disclosures that ordinary mutual funds are required to display, and encourage states to compete against one another and to discourage "protectionist measures" that chain state residents into "substandard" local plans.

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