Obama’s Latest Tax Hike Proposal on ’529 College Savings Plans’ Breaks Middle Class Tax Pledge

More Free StuffObama’s Latest Brainstorm of ‘More Free Stuff’
Image: Joe Thompson@Twitter 

(CNN) The most compelling reason to save for your child’s college education in a 529 Plan has been for the tax savings–One can sock away up to $14,000 a year according to the IRS (which one of course pays taxes on when earned) for a child’s college costs and pay no capital gains taxes on the interest  when the funds are used to pay for educational costs–Well that’s the plan now unless Obama has his way.

Obama’s latest brainstorm: To strip away 529 College Saving Plans of their key tax breaks–Savings would still be tax deferred but withdrawals on any new deposits made into the 529′s would be taxed as ordinary income to the beneficiary (actually double taxed as one pays income taxes on the money earned before socking it away into a 529 account) Still, why remove the incentive to sock away money to pay for a child’s future education costs?

To the Obama Administration its all about ‘fairness’ (fair for who? Who decides what is fair? Obama?) adding that tax-free distribution of money from 529 accounts unfairly benefits high income earners.

Under Obama’s proposal, one must disincentivize college savings and investment to make children dependent on the government (taxpayers) for their future educational costs.

The Wall Street Journal reports that a Senior Obama Administration official said, “Under the president’s plan, every dollar saved from consolidating and curbing inefficient tax breaks and tens of billions more–is plowed right back into higher education tax benefits for students and middle-class families. In particular, families with incomes of up to $180,000 (Obama’s latest definition of who is rich) will be able to benefit from the expanded Opportunity Tax Credit.”

This so called, ‘Opportunity Tax Credit’ provides more benefit to lower income students, in part because it pays ‘cash’ to students who don’t make enough to pay income taxes.

So let me see if I have this straight. Obama now wants to allow the government to tax (confiscate) interest earned in ’529 College Saving Plans’ (which one has already paid federal and state income taxes on the money earned before socking funds away for a child’s future college costs) in an effort to be ‘Fair’ to lower income Americans that will qualify for an ‘Opportunity Tax Credit’ paying them tax-free cash to help pay their educational costs.

Whatever happened to Obama’s ‘firm pledge’ not to raise taxes on families earning less than $250,000 annually?

Flashback Video: Remember in 2008 when then presidential candidate Sen. Obama claimed in Dover, New Hampshire:

“I can make a firm pledge. Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income taxes, not your payroll taxes, not your capital gains taxes, not any of your taxes.”

It sounds like its time to roll-over monies saved in 529′s while children are still young and one intends to continue to save for their future college costs for some years to come, into some other investment vehicle — Tax free municipals are looking better-and-better all the time.

Related: Obama Calls for $320 Billion in New Taxes –ATR

Obama SOTU Fantasy: ‘At This Moment — With a Growing Economy, Shrinking Deficits’

CBO: Social Security Disability Insurance to Go Bust by FY 2017 & Senior Benefits by 2032

Elizabeth WarrenLoony Liberal Lefty Sen. Elizabeth Warren (D-MA) Tweets Social Security Outlook is a Made-Up Crisis of the GOP

(CBO) “In calendar year 2010, for the first time since the enactment of the Social Security Amendments of 1983 annual outlays for the program exceeded annual tax revenues…CBO projects under current law the DI (Disability Insurance) trust fund will be exhausted in fiscal year 2017 and the OASI (Old Age and Survivors Insurance) will be exhausted in 2032.”

Taxpayers can also thank ObamaCare for liberating Americans out of the historic 40 hour work week which only exacerbates the problem–fewer hours working results in even less tax revenues in federal coffers, accelerating the crisis of funding pension obligations that Democrat Progressive/Socialists like Warren doesn’t believe exists.

Related: The ACA & the Economics of Part-Time Work –Mercatus Center

What Comes Around…It’s Time to Purge John Boehner as House Speaker

Its Time(Breitbart) Six Times John Boehner Proved his Incompetence
Image:
I am The Tea Party

Flashback: Remember in October, 2013 when Boehner capitulated to Obama on the debt ceiling with no spending cuts and budget reforms when the federal deficit was $16.9 Trillion (now its $18 Trillion+) after Boehner pledged in 2012:

“When the time comes, I will again insist of my simple principle of cuts and reforms greater than the debt limit increase. This is the only avenue I see…to force the elected leadership in the country to solve our structural imbalance.”

Riiight…

On the 04 December, 2012 I wrote here that Speaker Boehner, purged Conservatives from key committee’s–Its now time to ‘purge’ Mr. Boehner from his key House leadership position.

Related: FY 2014/2015 Budget Deal Was a Huge GOP Cave-In –CATO

White House Press Secy Josh Earnest: ObamaCare Substantially Reduced the Deficit

US Debt ClockU.S. Federal Deficit Now Exceeds $18 Trillion…
Image Courtesy: Victor Herrera@Twitter

During today’s White House Daily Press Briefing, Press Secy Josh Earnest claimed (at 51.38) “Its important for people to remember, the ACA (ObamaCare) substantially reduced the deficit which is good for the economic health and fiscal health of the country….”

Huh???

Isn’t this lie, eerily similar to the Obama Administration big whopper on the federal deficit, claiming on the 15 October: “Under President Obama, the deficit has been reduced by two-thirds since 2009.”

What do they think, that we’re stupid?

Flashback: Remember in 2008 when Obama was campaigning chasing votes for president, he assailed then President George Bush, calling him ‘unpatriotic’ for adding $4 Trillion to the national debt in 8 yrs as president.

It took Obama just 39 months to run up $5 Trillion more in debt and now the Obama Administration has the audacity to insult our intelligence by claiming the $18.080 Trillion federal deficit is actually falling.

Riiight…

California New Gas Taxes Go Into Effect, Now Highest in the Country

California Gas Taxes(Catholic Online) With the Exception of Two States,
States With the Highest Taxes Voted for Obama in 2012
Image:
Californians Against Higher Oil Taxes

Flashback: On the 13 May, I wrote here that California in 2014 was the worst state for business according to an annual survey of 500 CEO’s across the country which graded states which they were familiar on measures including taxes and regulatory regime, the quality of the workforce and the quality of the living environment.

With the 930 new laws which mostly all took effect yesterday, it isn’t very likely that CEO’s across the nation will give California any better grade this year.

Obama Claimed Today ‘Economy has Gotten Better’ Unless Your Black with 11.1% Unemployment or the New 18 Million Receiving Food Stamps

Obama Presser(Deneen Borelli) Obama Claims ’2014 Has Been Strongest Year for Job Growth’ Unless Your Black 11.1% Unemployment –Image: ABC @Twitter

Obamanomics...18 Million Added to Food Stamp Program
Image: Soquel by the Creek@Twitter

Obama’s Watch: Catastrophic Economics and What Post-Ferguson Racial Politics Have in Common

Wages and HoursWages & Payroll Hours at Anemic Pace

(WSJ) Americans are waiting for a raise, wages have been stagnant since the recession, squeezed family budgets and contributed to the dissatisfaction with the economy–average hourly earnings in the private sector have risen just 2% in October from a year ago, in line with the sluggish trend of the past 5 years and barely exceeding the inflation rate–cost of living.

On the 07 November, I wrote here the U.S. Labor Participation Rate held steady at an historic 36 year low of 62.8% according to the Bureau of Labor Statistics. Black Unemployment remains at double-digit highs of 10.9% nearly double the national average now six years into Obama’s failed presidency.

The Obama Administration has attempted to divert Americans attention away from their catastrophic economic policies by playing the race card, dividing Americans against themselves and never has this been more clear, since the post-Ferguson Grand Jury decision.

How Israel Can Help Solve California’s Water Crisis

Israel 21C(Israel21C) How Israel Can Solve California’s Water Crisis

  • Flashback: On the 15 May, I wrote here if not for California’s wacky environmentalists policies and want for more crippling regulations that are now driving away business investment and opportunity, legislators in Sacramento could have helped out everyone had they invested in the future years ago by constructing life-saving desalination plants along the coastline such as Israel’s Sorek Desalination Plant that provides 26,000 cubic meters or 7 million gallons of clean portable water every hour to over 1.5 million people.

U.S. Budget Deficit Now $18 Trillion+