By A.P. Dillon
Since Obama took office, he’s harped on wealthy Americans needing to pay “their fair share“. Millionaires need to pay up. Get Warren Buffet and his secretary in here stat! Some quick examples from over the years:
In 2014, all this ‘fair share’ squeezing began to have consequences. Corporations revolted and started running for cover. The response was Obama calling them ‘deserters’ and Jack Lew calling for more ‘economic patriotism’.
All this ‘fair sharing’ was just about millionaires, until now. Enter Obama’s “middle class economics“.
Now, the President wants to tax 529 education accounts — the very accounts that millions of non-millionaire Americans count on to fund the higher education aspirations of their children. Obama wants to tax these account like ordinary income.
Glenn Reynolds’s column at USA Today this week covered this move on 529 accounts:
Though millions of Americans have been putting money into “tax free” 529 plans to save for their children’s increasingly expensive college educations, President Obama would change the law so that withdrawals from the plans to fund college would be taxed as ordinary income. So while you used to be able to get a nice tax benefit by saving for college, now you’ll be shelling out to Uncle Sam every time you withdraw to pay for Junior’s dorm fees.
This doesn’t hurt the very rich — who just pay for college out of pocket — or the poor, who get financial aid, but it’s pretty rough on the middle– and upper–middle class. In a double-whammy, those withdrawals will show up as income on parents’ income tax forms, which are used to calculate financial aid, making them look richer, and hencereducing grants.
Read the whole thing.
So Obama wants to tax 529 education accounts that the middle class depend on. Now let’s go back and remember the announcement Obama made about making Community College “free”.
Obama has proposed to make it a ‘cost sharing’ with the states scenario. One has to ask oneself, when has a ‘cost sharing’ scenario with the federal government ever worked to the benefit of the states? *crickets*
Nothing is “free”. The money has to come from somewhere. CNBC points out this fact and actually called this move ‘insane‘.
One could argue that this taxing of 529 accounts could possibly go to help pay for Obama’s “free” Community College idea. Under the guise of paying your “fair share”, arguably what is really going on here is a redistribution of your child’s education fund to pay for the education of others.
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A.P. Dillon (Lady Liberty 1885), is a Conservative minded wife and mother living in the Triangle area of North Carolina. A.P. Dillon founded the blog LadyLiberty1885.com in 2009. After the 2012 election, she added an Instapundit style blog called The ConMom Blog. Mrs. Dillon recently participated in Glenn Beck’sWe Will Not Conform. Mrs. Dillon’s writing, in addition to Da Tech Guy’s Magnificent 7, can also be found at StopCommonCoreNC.org, WatchdogWireNC and WizBang. Non-political writing projects include science fiction novellas that are, as of yet, unpublished. Her current writing project is a children’s book series.