Posted on 06/04/2007 5:39:44 AM PDT by K-oneTexas
"KIDDIE TAX" GETS A HIKE I'm still waiting for the day when the word "loophole" only applies to the laces on our shoes. In the meantime, it is still a "dirty" word used to describe the crafty ways we try to get out of paying more taxes to the government. It's my money. I earned it. I want to keep it.
The newest change to our wildly complicated tax system applies to the "Kiddie Tax". The tax currently applies to any unearned income, such as dividends, interest and capital gains, of children under 18, which is taxed at the parents' marginal rate. Well as of 2008, the "Kiddie Tax" will apply to children under 19 or full-time students under age 24.
Sure does seem to extend the idea of being a "kid." Apparently you can still be a "kid" who has voted in 2 presidential elections, served in combat, and drank alcohol for three years...according to our government. And why? All for the sake of taxes. Just so the government can weasel more earned money out of wealthy parents who can afford to provide college education funds or stocks to their children. At this rate, maybe the government will label me as a "kiddie" again!
I understand the purpose behind it. Our government does not want parents hiding their wealth under their children's name.....to that I say so what.
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