It figures. Barack Obama’s communist proposal to tax your kid’s college savings account has an exemption — for Malia and Sasha Obama.
One of the less talked-about proposals President Obama offered this week was to take away the tax-exempt status of 529 college savings plans. These very popular plans allow parents to defer income – before it’s taxed – into savings accounts to then be withdrawn, also tax-free, to use for qualified college expenses.
I’ll dispense for the moment with the larger question of whether stuff like this represents a wise overall approach to the tax code (it doesn’t) and just focus on the particular change Obama wants to make. That is: He wants to start taxing the withdrawals parents make from their 529 accounts when it’s time to pay for college, so there would be far less reward for socking that money away in the first place. But the federal government would get to confiscate more capital from the private sector! The Democrat dream is fulfilled every time a dollar goes from private hands to politicians’ hands.
But here’s the kicker: The Obamas themselves have already put more than $240,000 into a 529 account. So they’ll now have to pay the tax, right?
No, sillies. Obama only wants the government to tax withdrawals of funds deposited after the change is made. So those who have already made the deposits – like him – can still withdraw them tax-free. Nice, huh?
From each according to his ability, to each according to his needs. Unless your father is the king!
Rich guys like Obama, who can front-load their kids’ 529 plans, won’t be subjected to his new tax. But ordinary schmoes like you and me who save a little every week? Yeah, we get hosed.
Oh, but it’s for the Common Good dontcha know. And according to the looney lefties at the Star-Ledger it’s Obama’s version of the G.I. Bill:
This is the president’s G.I. Bill, minus the army — an astute and far-reaching initiative that illuminates a path into the middle class for millions, just as the last G.I. Bill did for their grandfathers. This 21st Century investment in human infrastructure shows the same confidence in the potential of our workforce.
The G.I. Bill was earned through service, and sacrifice. This is just another liberal give-away to buy votes for Democrats. Besides, Obama already has a quasi-free college plan, he’ll forgive some of your loans for each year you spend in the Hitler Youth ObamaCorps.
That’s already his “G.I. Bill.”
So, why the big push for “free” community college?
Because it plays into his long-term strategy to tax all wealth. The money you have sitting in the bank is burning a hole in his pocket. Like all Marxists, he believes he knows how to spend your money better than you do.
Fortunately his whole tax fantasy is DOA in the new Republican Congress. But it’s instructive to see just how deviously mendacious he really is. When he says “tax the rich,” he makes sure to insulate himself and his cronies from the damage his policies inevitably cause. Know your place, peasant!