Posted on 01/20/2015 12:00:23 PM PST by Rusty0604
Hoping to dominate the narrative on a holiday weekend and on the eve of the annual “State of the Union” speech, the Obama White House late Saturday night leaked some of the new tax ideas in their upcoming budget.
One tax hike in particular was very odd, since it’s aimed almost exclusively at middle class families with kids–the exact demographic the goodies in the tax plan is targeting.
The levy in question would increase taxes on college savings accounts known as “529 plans” (after their section in the Internal Revenue Code). By definition, these accounts are really only used by middle class families. Poorer households don’t have the extra income to save (and even if they have a little, there are much higher priorities like retirement or saving for a home). Very wealthy families might use 529 plans, but it’s far more likely that they have complex trust arrangements set up for their children.
529 plans tend to be opened up by aspirational parents who are on the “mass affluent” side of the middle class earnings spectrum. They are an odd target for a tax increase.
But there it is buried on page 9 of the leaked document: “The President’s plan will roll back expanded tax cuts for 529 education savings plans that were enacted in 2001 for new contributions…” Note that this is right before they also announce the repeal of Coverdell Education Savings Accounts (Coverdell ESAs), another similar move against the same middle class savings targets.
(Excerpt) Read more at forbes.com ...
They do not want anyone not relying on government.
Over my dead body.
That cash is for my son.
The whole 529 plan was much ado about nothing anyway. What a farce.
Too bad everyone can’t go to college for free like Obama did.
So. What are you going to do about it?
Inquiring minds and all....
Jump Up and Down, Turn Blue in the Face
You know...all we can do: bombard the Congress with No!
Do they listen?
We’ll see.
I don’t agree. Sometimes anything to lower your tax bill helps. It’s a choice anyway.
Free college is just another crutch to prop up the unemployment data.
DON'T BLAME THE VOTERS.
In this most recent election, the conservative message WON, overwhelmingly. But the sellouts are representing the Chamber of Commerce-globalist agenda instead of us. The powers that be are hard at work, backstapping us and force feeding Republicans Jeb, Christie, or Romney as nominee.
The problem is that elections DON'T have consequences anymore!
Will you condemn the attempts to nominate one of those elitist sellout losers? If not, you're part of the problem.
The Democrats really, really want to do away with 401(K)s too. Obama already proposed limiting the balance that one could have in their account. After all, any money that a person saves in a tax deferred account is money they can’t redistribute and that is not “fair”. And, they don’t like having people that don’t rely on the gov’t. They want you to pay taxes and buy stuff and rely on them for everything else.
Exactly. When I worked with those more frequently, it was the RARE client who ever actually had any investment gains in the 529 accounts. Probably 0bama is fooling himself into thinking there is even anything there to be taxed.
Interviewer: Why do you say that they are not paying their fair share?
Obama: Because they still have some money left.
The amount of revenue is irrelevant. It's not fair some people don't spend every cent they can get their hands on.
is there any decision this guy makes that makes sense?
That is the argument the liberals make. They claim that common people are too stupid to save and invest for themselves, so the gov’t should take their money and take care of it for them.
If I had $100 and was taxed at a combined Fed and State income tax rate of 43%, if I did nothing and paid taxes I would have $57. If instead I put $100 in a tax deferred account and made bad investments and lost 20%, I would still have $80. If you don’t have to pay such a high tax rate in the future and inflation isn’t high enough to wipe out the dollar value, you could still come out ahead.
It all depends on individual circumstances. Individuals making decisions for themselves.
People out to drag this POS out of the White House and throw his azz to the curb.
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