Obama Tax Hike on College Savings Plans Breaks Middle Class Tax Pledge

Obama might be "announcing" some new tax plans tonight at the State of the Union Address.

According to this story, he wants "earnings" from college savings plans to be fully taxable.

As it is now, those funds don't get taxed if the money pays for tuition.

Geesh.

People have enough problems with money as it is.

Now this will make even tougher for college students and families.


Obama Tax Hike on College Savings Plans Breaks Middle Class Tax Pledge

Tonight, in his State of the Union address, President Obama will propose a series of tax increases on the American people. One of these tax increases is indisputably an income tax hike on middle class families with children.

Under Obama’s plan, earnings in “Section 529” (named for its location in the Internal Revenue Code) college savings plans will face full income taxation upon withdrawal.

Under current law, earnings growth in 529 plans is tax-free if account distributions are used to pay for college tuition and fees. The Obama plan will tax earnings in these accounts even if they are used to pay for college tuition and fees.

Who's the "Joke" on this time?

originally posted by: xuenchen
Obama might be "announcing" some new tax plans tonight at the State of the Union Address.

According to this story, he wants "earnings" from college savings plans to be fully taxable.

As it is now, those funds don't get taxed if the money pays for tuition.

Geesh.

People have enough problems with money as it is.

Now this will make even tougher for college students and families.


Obama Tax Hike on College Savings Plans Breaks Middle Class Tax Pledge

Tonight, in his State of the Union address, President Obama will propose a series of tax increases on the American people. One of these tax increases is indisputably an income tax hike on middle class families with children.

Under Obama’s plan, earnings in “Section 529” (named for its location in the Internal Revenue Code) college savings plans will face full income taxation upon withdrawal.

Under current law, earnings growth in 529 plans is tax-free if account distributions are used to pay for college tuition and fees. The Obama plan will tax earnings in these accounts even if they are used to pay for college tuition and fees.

Who's the "Joke" on this time?

So this is why he decides to give 2 years of college for free? So he can take that money for the Govt. instead. Because let's face it, even tho it's free, many won't get past the first exam rounds and drop out but he'd have access to the taxes from those that actually want to finish what they started.

I knew something was up. He never gives anything for nothing.

Peace

a reply to: xuenchen

All the more reason for a streamlined, flat tax that eliminates all loop holes and deductions and, more importantly, makes the Internal Revenue Service immediately and thankfully obsolete.

a reply to: xuenchen

Oh Obama...once again you are squeezing those who matter just as much as the lower class...still from peter to give to paul...how else could he do it...let's see the republican machine deal with this one...one more move by the democrats to demonize the republican parties...this will be spun to simply infer that the republicans don't want free tuition for the poor..

For those that are going to argue that this will be for everyone including the middle class..I say you are nuts..those that qualify are going to be from single parents, earn less than 30,000.00 a year and will get special preference should you be a minority..

It's a win win for the democrats...

originally posted by: xuenchen
Obama might be "announcing" some new tax plans tonight at the State of the Union Address.

According to this story, he wants "earnings" from college savings plans to be fully taxable.

As it is now, those funds don't get taxed if the money pays for tuition.

Geesh.

People have enough problems with money as it is.

Now this will make even tougher for college students and families.

He has to cover the cost to the American people concerning these "free two years" of community college somehow.

What's sad is that there are actually Americans--college students and recent grads, even--who believe the BS about "free" this or that from the government.

It's no wonder that test scores prove or indicate that reading comprehension--known as the ability to understand what one reads/hears--has been flushed down the same toilet as the one for the return on investment that college tuition is supposed to net people.

a reply to: AugustusMasonicus

Not to derail the topic of the thread, but the IRS will still be here, even under a flat-tax system. A flat tax is still a tax, so SOME government agency will oversee it, and since one already exists...

Personally, I'd love a flat-tax system, and would love to see the IRS have a reset button hit and restart from the ground up. We can't get around the "need" for a government agency that oversees the taxation of the public (and, by extension, investigates those allegedly cheating the system), but we sure as hell could cut down the manpower and associated things with it by probably 60%.

That would be one helluva thing to accomplish!

I might be wrong but I don`t think Obama is going to get any new taxes or tax hikes past the republican controlled congress.

a reply to: SlapMonkey

I think where I was going was that they would no longer be a 400lb gorilla. More like a 12lb rhesus monkey.


And I would put a funny cap on them and make them collect change in a cup.

Big Boy Talks ......

from a few years ago.

This footage was taken during than presidential candidate Obama's speech in Dover, NH. President Obama pledges not to raise taxes on anyone making less than $250,000 a year.

Obama's LIE to Never to Raise Taxes on Anyone Making Less Than $250,000 a Year

www.youtube.com...

Say it ain't so... He has lied for 6 years.. Has he ever told the truth...

A few months ago on a few of the threads on the topic of low earners and taxes and benefits etc, I posted stating that when the 'lower classes' don't have a red cent left that can be squeezed from them, gov will then begin to go after the middle-class money. Of course everything I said was poo-pooed and laughed at by those 'I'm alright Jack's', and I was often told that their view from higher up the ladder was fantastic as they look down on those occupying the lower rungs of poverty. I said that they should enjoy the view whilst they still can, because they will be soon joining us on the bottom of the ladder.

I added that I couldn't wait for the day they start posting on ATS squealing about the taxman snapping at their heels to get at their cash.

'No chance, it will never happen', they said.

'We'll see', said I.

It looks to me like it's started.

My next prediction for the middle earners is more taxes, then more taxes, and pay cuts, job losses, etc. You will soon be replaced in your middle-earning jobs by those willing to do that job for less pay. There are thousands of adequately qualified and degreed people who are having to settle for shoveling sh!t for a living on MW as a stop-gap job, and any one of them would jump at the chance to do your job for half your earnings, because it is more than they're paid now.

Can't you see it coming?

I can.

It's already been done to the low-earners, and all the middle-earners all laughed as they were trampled further into poverty.

The only thing I find amusing about it, is that those smug-faced middle-earners really actually believed they wouldn't be next.

It's only natural this tax comes to light after the free 2 years of college was introduced...Like I said in another thread, they can give you tax breaks or find ways to put money in your pocket...then turn right around with another tax that takes it right back. These people aren't looking out for us...we have to look out for ourselves...The economy won't change for the better. It can't. It's driven by the rich elite. Money is the only reason why this fake economy is the way it is. Laws are passed because they aren't smart enough to fix it, or morally capable of giving up their billions in profit.

originally posted by: xuenchen
Big Boy Talks ......

from a few years ago.

This footage was taken during than presidential candidate Obama's speech in Dover, NH. President Obama pledges not to raise taxes on anyone making less than $250,000 a year.

Obama's LIE to Never to Raise Taxes on Anyone Making Less Than $250,000 a Year

www.youtube.com...

Most people won't even get his spin tonight when he talks about raising taxes on the wealthy! Hell, they will be listening to him with tears in their eyes thinking he is actually going after the 1% who own 50% of the worlds wealth, when in reality he is talking about destroying those who are wealthy that fall outside of the umbrella of the 1%!

Basically, considering the middle class have basically been destroyed, Obama is merely making those who are rich replace what used to be called the "middle class"? The 1% will now gain 60% of the worlds wealth overnight!

Don't these jackasses get it? The Proles are sharpening pitch forks and getting the torches ready! The Bastille is about to fall! VIVA LA REVOLUCION!!!

I think Obama is the most GREEDY person I have ever seen in my lifetime.

His non stop obsession with other peoples money has no bounds.

Sic Semper Tyrannis.

Thus ALWAYS to tyrants.

originally posted by: neo96
I think Obama is the most GREEDY person I have ever seen in my lifetime.

His non stop obsession with other peoples money has no bounds.

Sic Semper Tyrannis.

Thus ALWAYS to tryrants.

I never thought about it like that, but yeah, you're so right.

Dems are obsessed over taking other people's money. That's their entire business model.

originally posted by: Jamie1

originally posted by: neo96
I think Obama is the most GREEDY person I have ever seen in my lifetime.

His non stop obsession with other peoples money has no bounds.

Sic Semper Tyrannis.

Thus ALWAYS to tryrants.

I never thought about it like that, but yeah, you're so right.

Dems are obsessed over taking other people's money. That's their entire business model.

I think so they are sociopaths after all.

They sell themselves as altruistic, but the reality proves they are the antithesis of what the word means.

It doesn't have anything to do with helping others. They only do it for power,and control, and maintain it at ANY cost.

originally posted by: neo96

originally posted by: Jamie1

originally posted by: neo96
I think Obama is the most GREEDY person I have ever seen in my lifetime.

His non stop obsession with other peoples money has no bounds.

Sic Semper Tyrannis.

Thus ALWAYS to tryrants.

I never thought about it like that, but yeah, you're so right.

Dems are obsessed over taking other people's money. That's their entire business model.

I think so they are sociopaths after all.

They sell themselves as altruistic, but the reality proves they are the antithesis of what the word means.

It doesn't have anything to do with helping others. They only do it for power,and control, and maintain it at ANY cost.

Sociopath.

Good call.

Perfect description.

a reply to: jude11

Typical, share the wealth and attack "white privilege" at the same time since to his type, the only middle class is the "white" middle class. It's all about the socialist dream scape. If the government can entirely control the funding of higher education, they can, ultimately, control who goes to college and where they go.

Not that it matters...I doubt he can get anything through this Congress and I don't know he can do this by Executive Order.

Sad times.

Sad if true. Not surprising, but sad.