Posted on 01/20/2015 1:01:14 PM PST by Brad from Tennessee
Tonight, in his State of the Union address, President Obama will propose a series of tax increases on the American people. One of these tax increases is indisputably an income tax hike on middle class families with children.
Under Obama’s plan, earnings in “Section 529” (named for its location in the Internal Revenue Code) college savings plans will face full income taxation upon withdrawal.
Under current law, earnings growth in 529 plans is tax-free if account distributions are used to pay for college tuition and fees. The Obama plan will tax earnings in these accounts even if they are used to pay for college tuition and fees.
These accounts are commonly used by middle class families. There are about 12 million 529 accounts open today, and they have an average account balance of approximately $21,000. Most 529 plans permit monthly contributions as low as $25 per month. . .
(Excerpt) Read more at atr.org ...
O’s idea of the middle class isn’t the traditional one.
It’s people just barely above complete government teat-suck.
It’s not a notion of independence and being a bit ahead of the game through effort.
Look at his college initiative: steal from savings plans to fund (and unionize later) community colleges, many of which are remedial.
That’s confusing “college” with “education” the same way he confuses “insurance” with “health care.”
This pisses me off. We have one for each of our three (six, three, and 15 months), and now I will be punished for planning ahead. Additionally, this opens the floodgates.
Hey, at least the first 2 years of community college will be FREE!
In Obama’s world, there are simply two sides - those inside the Progressive/Socialist tent, and within the grasp of the leviathan, and those outside of it, who are enemies.
If it happens, the Repulsicans can kiss their Bohenead and McDorkell infected *sses goodby.
Forever.
Community colleges are already unionized in some States. They need this to pay for their pensions. More comments on this:
http://www.freerepublic.com/focus/f-chat/3248824/posts
This is all political theater. He knows full well none of this has a prayer of going anywhere, which is exactly what he wants. He needs a scapegoat to sell to the public.
"I tried to get this tax increase passed to help out the middle class folks, but the evil Republicans wouldn't work with me", etc.
Nobody sucks like Obunghole. I wish him every possible misfortune.
Top Medicare tax went from 1.45% to 2.35%
Top Income tax bracket went from 35% to 39.6%
Top Income payroll tax went from 37.4% to 52.2%
Capital Gains tax went from 15% to 28%
Dividends tax went from 15% to 39.6%
Estate tax went from 0% to 55%
How about telling me about reduced spending instead, so I get to spend some of MY money instead of you jerks taking it to give free cell phones to deadbeats to buy some votes!
Most people won't even hear or know about this scheme. They won't tune in tonight and listen to this jug ears spout his marxist ideology prettied up with sprinkles and pixie dust and it will quickly fade into nothingness, along with Obama.
Thanks for data.
Bingo!
Oh wait to you hear what they have done to small businesses, aka Form 3115...
This is a "FR exclusive" as I got of the phone with the lesser half of my CPA gnome...
New ruling, a certain 3 letter organization wants small businesses too:
* Not expensing any capital goods over $500.
* They want them to depreciate them all (Marcs) above $500.
* They might want them to go back and change many years of this.
* No statue of limitation as to how far back they can go.
* If the CPA's screw up they could have fines up to $1000 and loose that title.
* It could take days to do taxes and the revamps could take a month.
The CPA world has asked , please reconsider with revisions.
This will potentially crush many a small business.
I Need FR CPA wonks to confirm all this, please spread the word.
Trial run for 401K’s and IRA’s.
Remember, as stated here on FreeRepublic, giving you a tax break is the same as giving you a welfare check!
But this is why I don’t have one of those funds for my kids. To much can happen.
That’s to pay for the “free” community college tuition.
When you have lost the control of the language, every argument later is already forfeit.
“Pledge” probably means something altogether different from what has been generally accepted historically and by definition in the dictionary. By pledging the revenues from these new taxes to “relieve” the distress visited upon those upon whom the taxes were imposed, it is supposed to make everything all right again.
It does not. Like the lady who wanted to make the blanket a little longer, by cutting off one end of the blanket and stitching it on the other end, the blanket ends up being a little shorter each time this “solution” is attempted.
This is going to happen to Roth IRA’s also. Take the savings now, so you know that you will get it.
It’s okay, though, if taxes eat up the college fund your kids can always attend the “free” community college...
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