We can't afford any more "free" stuff - it ends up costing too much.
Posted on 01/19/2015 10:51:18 AM PST by reaganaut1
President Barack Obama's State of the Union Address tomorrow proposes $320 billion in taxes over the next 10 years. Pretty much every new story is presenting it as "increasing taxes on the wealthiest" to pay for programs to help the middle class. That's bad enough. It's not like he's proposing increasing taxes to pay for fundamental government operations. It's just a wealth transfer to cover the "costs" of offering up tax credits to famillies with two working parents (screw you, stay-at-home moms and dads!). But beyond that, Americans for Tax Reform looked at the package and point out several ways these tax increases are going to potentially come back and hurt others besides the richest among us.
Obama previewed his plan for "free" community college for students seeking associate's degrees a couple of weeks ago. The administration has put a price tag of $60 billion over 10 years for it (which means it's likely to be much higher). Part of how Obama plans to pay for it is to tax the special saving funds, called 529 plans, that people can use to gather money to pay for their children (or themselves) to go to college:
(Excerpt) Read more at reason.com ...
Each year our colleges and universities turn out thousands of newly minted graduates with degrees. What good are they if there are no jobs for them to fill?...........................
the reason that four year colleges are massively expensive is because the central government has spent 30 years trying to make them cheap.
community colleges may as well close their doors; imagine what trying to make them free will do.
Then they pay for it, they will assume more powers over it, and make sure that more affirmative action individuals are admitted.
Taxing 529’s!
This is a typical fraud. First they promote 529’s, then they hook people, then they tax the hell out of them so as to give money to their best buddies.
Under the Obama plan, earnings growth in a 529 plan would no longer be tax-free. Instead, earnings would face taxation upon withdrawal, even if the withdrawal is to pay for college. This was the law prior to 2001.
Why do I get the dread feeling that Obama plans to do the same thing with Roth IRAs too and take away all promises of tax-free withdrawals? It might just be better to save in a non-IRA account and pay capital gains taxes as I sell and buy stocks.
If the tax rate is the same at withdrawal as the regular tax rate is, then saving in a 529 plan provides no tax benefit and might be worse than an account where you pay capital gains taxes rather than income taxes. The IRA's main advantage is the hope that your tax bracket will be lower in retirement than while working, but I don't know how true that would be.
Then they’ll go after the 401ks.
As long as the gibmedats are getting something for free they don’t care how many hours you worked or what you did without to give them what they got. Scumbuckets to the core! And Obama doesn’t mind giving it ALL away as long as it keeps the white man enslaved and breaks his back. In fact that’s the plan. Let the gibmedats change places with us for awhile and see if they understand “ain’t nuttin fo’ free”; someone DID have to build that so you could take it away...
Those fuckers just can’t keep their dirty hands off of our money. (Sorry I’m keeping the language in there, that’s how mad I am)
Ah, the purpose of education has long been turned into a funding mechanism for the DNC. The graduates have served their initial purpose: to provide jobs for "educators" that funnel $$$ to the Democrats.
Obamanomics to the rescue!
If you look at the formulas for FAFSA (Free Application for Federal Student Aid), you should NEVER have money in your college-age child's name. The FAFSA calculations will reduce any financial aid dollar-for-dollar by the amount of money your kid has in his name.
We can't afford any more "free" stuff - it ends up costing too much.
Call this bill what it really is — a way to boost pay for community college professors and administrators.
It won’t make a damn bit of difference for the kids, many of whom don’t belong in community college and who won’t get any useful skill out of it.
When I started college in 1991, the cost for full time in-state tuition was about $800 a semester. It is well over three times as much now. If it had just kept up with inflation it would be about $1400 now.
It’s also a way to create a whole new generation of debtors. Last I checked federally controlled (now) student loans well exceed one trillion dollars. That’s a lot of people owing the company store.
There was a statement from a Kali Rep (D) in the fall of 2008 about having to go after tax-deferred retirement accounts.
remember the rule of 10 (in government spending)
Every program will cost 10 times as much as originally projected
I used 529’s to save for my children to go to college. I got audited every single year I made distributions. The IRS would flag my return for having unpaid capital gains. Every year we would send them a letter detailing it was 529 money and we never had to pay.
I suspected that from the beginning, which is why I never put any money into a Roth. They make a lot of sense but for that risk factor.
Although what they may end up doing is giving you a choice between your IRA/401/403 and traditional SS. You can take distributions from one or the other, but not both. If you want SS, sign over your IRAs. Some countries are already doing that.
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