Posted on 05/20/2006 8:17:04 PM PDT by woofie
- The $69 billion tax cut bill that President Bush signed this week tripled tax rates for teenagers with college savings funds, despite Mr. Bush's 1999 pledge to veto any tax increase.
Under the new law, teenagers age 14 to 17 with investment income will now be taxed at the same rate as their parents, not at their own rates. Long-term capital gains and dividends that had been taxed at 5 percent will now be taxed at 15 percent. Interest that had been taxed at 10 percent will now be taxed at as much as 35 percent.
The increases, which are retroactive to the first day of the year, are expected to generate nearly $2.2 billion over 10 years, according to the Congressional Joint Committee on Taxation, which issues the official estimates.
Over all, the tax bill that Mr. Bush signed Wednesday reduces taxes by $69 billion.
Mr. Bush pledged in 1999 to veto any bill that raised taxes. In response to a question about the tax increase on teenagers in the new legislation, the White House issued a statement Friday that made no reference to the tax increase, but recounted the tax cuts the administration has sponsored and stated that President Bush had "reduced taxes on all people who pay income taxes."
(Excerpt) Read more at nytimes.com ...
As per your screen name (thank you for bringing this up) and all else that appears in in NYT..
"All the News that fit to Sin"
Woof Woof!
who the hell is writing this damn Bills (Well Bill Thomas for this one). Between the Felony word the way helping illegals was written in the house bill and this crap that can be use in Nov agisnt Republicans, the republicans are writing their own defeat.
Probably in these words: "He is so BUSTED."
What type of accounts would be affected? Obviously not a 529 or am I ignorant to college saving plans in general? Please feel free to school me up.
I can see them saying, "Which template should this go in?"
"Let's see, 'Bush hates blacks'.... no, that won't work, how 'bout 'Bush spies on Americans'? "No.... No.... uh... 'Bush Lied!' Yeah, that's the ticket!"
up about 6,200 votes now.
This also showed up on aol news ...they seem to love to hate GW
opps, the 6000 votes was about the mayors race. Wrong Thread.
I can see the people at NY Times saying ...Maybe this will make em hate Bush...
Hmm, 14-77 yr olds you say?
Guess they won't be voting for him in the next presidential election. That'll teach him.
I think this "tax hike" is a good idea. As long as kids are listed as dependents on their parents' tax returns, they shouldn't be permitted to pay lower taxes on their own investment income. I suspect this loophole was being exploited extensively by parents who were using their kids to reduce their own tax liabilities.
"Teen Day Traders Hurt Worst"
But thanks for the update.....
I have a 12 year old with investment income...wonder how she is affected
despite Mr. Bush's 1999 pledge to veto any tax increase.
Sheltered or unsheltered? I've got the feeling the bill only applies to unsheltered income.
I assume it is unsheltered, she pays a pretty good amount of taxes..and her income is paying for private school
ROTFLOL!!!!!!
You are exactly right. The NYT should be all for this but you know they can not right anyghing good it is all spin. Just like parents will say their teenager works for them and will pay them the amount that they can get away with at a lower income tax rate.
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