Author Topic: How is this helping the middle class?  (Read 664 times)

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Learjet89

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How is this helping the middle class?
« on: January 21, 2015, 05:30:41 pm »
Seems like a pretty raw deal

http://www.forbes.com/sites/ryanellis/2015/01/19/obamas-new-state-of-the-union-tax-hike-on-middle-class-529-college-savers/

Quote
One tax hike in particular was very odd, since it’s aimed almost exclusively at middle class families with kids–the exact demographic the goodies in the tax plan is targeting.

The levy in question would increase taxes on college savings accounts known as “529 plans” (after their section in the Internal Revenue Code). By definition, these accounts are really only used by middle class families. Poorer households don’t have the extra income to save (and even if they have a little, there are much higher priorities like retirement or saving for a home). Very wealthy families might use 529 plans, but it’s far more likely that they have complex trust arrangements set up for their children.

One could read that too quickly and miss what the document is referring to. Prior to 2001′s enactment of the Economic Growth and Tax Relief Reconciliation Act (EGTRRA, a.k.a. phase one of the “Bush tax cuts”), 529 plans were far less advantageous than they are now. Money went in after-tax, and grew tax deferred, until college. Upon withdrawal, earnings were taxed at ordinary income tax rates, which can go as high as 39.6 percent.

After the tax law change (which was made permanent in 2006), amounts withdrawn to pay for college were totally tax free. 529 plans thus became a kind of Roth IRA for college savings–you didn’t get any up front tax break (except maybe on your state income tax), but you could rest assured that your college nest egg’s growth would face no taxation when it came time to make tuition payments.

The Obama plan aims to turn back the clock, once again taxing earnings growth in 529 plans as ordinary income. This is a direct and clear tax increase on middle class families sacrificing to save for college, and it’s likely to result in a mass divestment from this type of savings.
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rocket625

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Re: How is this helping the middle class?
« Reply #1 on: January 21, 2015, 05:33:18 pm »
when obama says "middle class" he means welfare collectors
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testudo

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Re: How is this helping the middle class?
« Reply #2 on: January 21, 2015, 06:04:59 pm »
when obama says "middle class" he means welfare collectors

There's no real definition for what "middle class" means.    Most people regardless of income consider themselves "middle class."   That's why politicians tend to throw that term around so much.   Because all the tards,   especially the low class libtards,  think they are who is being talked about.

Middle Class theoretically would be considered the "median household income."   

Median income right now is around 52,000 per year right now,  compared to just under 57,000 when Obama first took Orifice.

Another popular rule of thumb says that anyone earning 25% more or 25% less than the median is within the middle class. By that metric, households earning between $38,954 and $64,924 are middle-class.







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Dog

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Re: How is this helping the middle class?
« Reply #3 on: January 21, 2015, 06:12:42 pm »
In that case, I've been upper class since graduating from college.  Yay for me, but I want tax breaks too.
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rocket625

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Re: How is this helping the middle class?
« Reply #4 on: January 21, 2015, 06:45:59 pm »
as you boys know i don't worry about it too much.   :lol
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testudo

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Re: How is this helping the middle class?
« Reply #5 on: January 21, 2015, 06:53:43 pm »
In that case, I've been upper class since graduating from college.  Yay for me, but I want tax breaks too.

Depending on when you graduated college you might have been upper class if adjusted for inflation.
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Re: How is this helping the middle class?
« Reply #6 on: January 21, 2015, 07:27:44 pm »
allmy niggas are rich as fvck
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Hedstrom

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Re: How is this helping the middle class?
« Reply #7 on: January 21, 2015, 07:37:09 pm »
Here's an idea...don't have any kids.
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