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 There is also no tax when the money is withdrawn, provided it is used for qualified educational expenses such as tuition, fees, books, room and board.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 ...
Obama wants a new middle-class tax.
I think you nailed it. This is telling the Obama Nation, "Look, I done Whitey again!"
And if Congress doesn't roll over right away, well, "I got my phone and I got my pen..... Watch this!"
It's all about 2016 turnout now, and he'll be in full Race Riot mode from now until the election.
That's why I never even looked at Roths; I knew "they" were coming. People who actually looked at the arithmetic would be in danger of getting sucked in by some pretty romantic-looking numbers, which is the only reason anyone should need, not to give Roths any "mindshare".
Now if only there was an opposition party
Basically, GWB passed the 529 plan into place for people to save their own money for their own kids’ education.
BO & his supporters see that as “YT’s way of doing things”,
and he’s going to “get YT” once more by removing that tax break.
Yep going after the whites while refinancing over and over minority houses. Really buying them for them. Then moving minority families into Fl, Ga,Va giving them incentives to move into those states, so they vote liberal. Yep our govt at war with its citizens.
Now, that is a FACT.
Obama sucks huge sacks of donkey c0cks. We set up 529 accounts for our daughters, only to have this POS raid them to give the money to his teat-sucking constituency? Disgusting.
It seems like the words “stupidity” and “the American people’’ fit into more and more sentences these days.
People in CA may no longer recognize DiFi, as they call her, but they endorse her and like her still.
I agree with your sentiment at outrage at this proposal, but this does not have a prayer of passing the current House & Senate. Just more lip service to his commie base.
"It's not fair that "they" have more than you and are able to save for their kids' education. They didn't build that!"
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