The End of College Savings Plans? Obama’s Newest Tax Hike Will Punish Parents Who Save For Kids College.
As Obamacare begins to fully roll out, and over Americans, another Obama birthed initiative is in its fetal stages. Just two weeks ago, President Obama dropped the newest “free” bombshell on an unsuspecting public. The newest con comes in the form of two years of community college for “free”. As many Americans are beginning to awaken from their ObamaMania coma, they are feeling the hangover that is the skyrocketing cost of “free” healthcare.
Naturally, the left swooned, and the right booed the new initiative. With the national debt surpassing $18 trillion with a “T”, the most important question is, how are we going to pay for it? The answer may not surprise those who have been paying attention for the majority of their lives.
The answer, as Sherlock Holmes would say, is elementary! - Tax, Tax, and Take from others. Of course!
The President's sixth State of the Union address is said to include $320 billion in new tax hikes. Among those, the Federalist Papers writes, some will affect “529 plans”. Americans for Tax Reform did a little leg work and found the new 529 plan tax buried deep in President Obama's new tax proposal.
“Under current law, 529 plans work like Roth IRAs: you put money in, and the money grows tax-free for college. Distributions are tax-free provided they are to pay for college. Under the Obama plan, earnings growth in a 529 plan would no longer be tax-free. Instead, earnings would face taxation upon withdrawal, even if the withdrawal is to pay for college.”
For those unaware, “529 plans” are “education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs”, according to Saving for College.com. The president's plan seems to be to take from those who have utilized a governmental system to put away money for their kid's education, and give it to your neighbor's kids who drives around with an Obama 2012 bumper sticker and thinks everything they want for free is a “right”.
Several folks on Twitter have already begun responding, ahead of the SOTU. Check out their responses below.
"How should we pay for my 'free' community college plan?" "Let's steal from people who saved money for college!" http://t.co/7qmJqMqwd5
— Sean Davis (@seanmdav) January 18, 2015
Obama wants to 'pay' for his 'free' college by taxing college savings plans? So, the responsible get to pay for the freeloaders.... again?
— Scott (@retiredfirecapt) January 18, 2015
Gov't inflates cost of college. Obama then hits college savings accounts to put it further out of reach. Obamanomics http://t.co/xCEWAQrLlF
— Seth Mandel (@SethAMandel) January 18, 2015
It should certainly come as no surprise that the President's plan is redistribution. As a candidate, Barack Obama made the statement heard round the country that “when you spread the wealth around” it is good for everybody. Since then, he has followed that mantra, with Obamacare being the most visual representation.