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 its aimed almost exclusively at middle class families with kidsthe 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 dont 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 its 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 Presidents 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 ...
“The whole 529 plan was much ado about nothing anyway. What a farce.”
Worked GREAT for us...
Got the daughter through Purdue’s most expensive program at a huge discount. She had no debt at graduation, and it didn’t bankrupt us.
Several Obama budgets were voted down 99-0 and 97-3 in the senate when the dems controlled the upper chamber. I’m willing to bet this year he’ll get a lot more democrat support and they’ll point the blame at republicans.
I don't see how they can tax this because the money I put in our 529 plan was after taxes. Although the growth is suppose to be tax free. Luckily, with the Republicans in charge Obama’s tax plan is DOA!
I’m glad it worked for you. Some people need to understand that we are individuals and have individual financial circumstances. We need to try to keep the choices we have to make our own financial decisions.
For many of the liberals I know, that's actually true.
If a person knows that they will suffer the consequence of their decisions they might make better decisions. If the gov’t doesn’t come to their rescue, then they will make better decisions.
I’m big on personal responsibility, myself. But my uber-lib sponge in-laws are not. And they are very uber... indeed.
And that, my friend, is the argument for the free market.
It’s not enough, I’m afraid FRiend.
Congress doesn’t give a crack about America. They only care about their bank accounts and fancy houses on the hill looking down like malevolent overseers determining our fate with cold loathing and greed.
I’ve said it before. A corrupted government cannot fix a corrupted government. The fix is in. It has been for a long time. This is pure simple fact. United we stand. Divided we fall. I believe there is some prophetic meaning in those words. It’s time to start doing more than e-mailing congress. It’s time for civil disobedience.
Just wait till Obama declares community colleges free. I and a few million other Americans will be paying taxes to the government to pay for “free” community college, while paying back our loans, while the value of our educations become worthless. Haha. There is some irony in this, as once the SHTF there’s not a single place in the world that the elites will be safe.
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