Posted on 01/22/2015 10:18:13 AM PST by reaganaut1
President Obama is pitching his new tax plan as a way to help the middle class at the expense of the rich. But middle-class savers are bound to notice if he achieves two of the White House’s stated goals—to “roll back” tax benefits of 529 college savings plans and “repeal tax incentives going forward” for Coverdell Education Savings Accounts.
Both plans allow parents, grandparents or anyone looking to help fund a kid’s education to contribute after-tax dollars into accounts that grow tax-free. There is also no tax when the money is withdrawn, provided it is used for qualified educational expenses such as tuition, fees, books, room and board.
Mr. Obama wants to allow the IRS to tax as income any withdrawals from future 529 contributions. This would make them less attractive. The White House goal seems to be to discourage private thrift, and encourage greater use of government benefits, when paying for college.
If the plans are closed to new investments and savers, those who stand to lose aren’t the 1%. As of June 30, 2014 there were 11.8 million 529 accounts holding $244.5 billion in assets, according to the College Savings Plans Network, a a group of state officials who administer the plans. The average account balance was $20,671. That sounds like “the middle class.”
The College Board says the average cost of tuition, fees, room and board at a private four-year nonprofit college this year is more than $42,000. So we’re supposed to believe the President is sticking it to fat cats when he targets savings plans that might cover one semester at a private college, or a full year for in-state students at public universities. This now makes you a Rockefeller on Planet Obama.
(Excerpt) Read more at wsj.com ...
People who are using 529’s tend to be personally responsible, and leftists hate that.
There’s very likely a racial disparity between 529ers and those who eschew this savings plan,
and THAT’S what BO is really targeting.
Yes.
'Cause I'm the TAXMANNN...
Who knew that would make it so far on this side of the pond?
To think our forefathers revolted over a whopping three percent...
“You don’t need those 529 plans, America. I’m giving you a “free” kommunity college indoctrination.” - Lord Obammie
How is this any different than putting (after-tax) money into a regular bank account, then having that money taxed as income — again — when we withdraw it?
(And why would I expect Obama to possess a lick of economic sense, much less any concern for the middle class?)
destroying the ‘middle class’ is a standard and necessary Communist strategy when they take-over and control any country.
the rich are usually part of the “communist” coup anyway, if only behind the scenes.........the poor are usually bought off with a few small ‘freebies’ .... it is the ‘middle class’ that poses the greatest danger to a Communist dictatorship
529ers are more likely to be members of the Republican Party.
Take their money and power.
Just like closing the auto dealerships of Republicans.
Piles of money do not sit idle. Democrats can sniff out dough from the moon.................
My government is at war with me.
FUBO!
Obama's goal is to have 2 classes in America. He's siphoning the money from middle class bank accounts to the poor in order to do so.
He's already accomplishing this thru huge hikes on health insurance which go directly to subsidies to the lower class. Now he'll try it with education.
This despite the fact that the middle class are the "working people"
For starters, the interest earned in "regular" bank accounts is minimal, even is you stash away your after-tax savings in longer-term CDs.
Obama wants to punish those who are responsible savers, and might actually earn a little more money by investing in the stock market.
For the same reason, the ObamaCare law will effectively ban people from saving money tax-free in high deductible Health Savings Accounts (HSAs). HSAs allow people to plan and save for their own health care and be responsible for it themselves.
The only reason HSAs haven’t been dropped yet is that he’s afraid of the blowback.
Oh, and for any of you proponents of the Roth IRA or Roth 401(k), whose after-tax contributions are supposed to grow and be wathdrawn tax-free, I give you the “Obama” example of breaking that “promise.” If he wants to tax smaller targeted educational accounts, he (and any like-minded liberals) sure as hell wouldn’t think twice about eliminating much larger tax breaks on the Roths.
The continued hollowing out of the middle class.
His real goal is to destroy 90% of the private Colleges and Universities and have federally run colleges and universities put in their place.
Ha Roth IRA? You think that is all? Not even close.
If this gets passed that commie bastard will confiscate or tax the crap out of Pensions, 401s, 403b, IRAs you name it.
Because don’tcha know we be greedy saving our whole working lives. It’s so unfair to the selfish, spoiled gibedat crowds who either never worked a day in their lives or spent it before they earned it.
I mean it’s like hey, they showed up and breathed too. They deserve the same as us. Makes me sick just thinking about it.
Meanwhile the bastards that push this crap make Millions while in office on insider trading info. they capitalize on.
ie. Diane Finestien and her crooked husband.
Well, of course. But investors knew all of those plans you mentioned would be taked upon taking distributions. Distributions from the Roth investments were supposed to be tax-free, just like the 529 plans. My point is that if Obama would propose taxing from one, he would surely tax the other.
His latest proposal is to put a cap of 3 million on retirement accounts. Once you hit that limit, no more contributions. This congress wont pass it. He is just pandering to the base..
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.