Update: January 27:2015: Barack Obama withdrew this plan and do you know why? Because members of his own party, even Nancy Pelosi told him to drop it. This is one unpopular idea across party lines except for the furthest left but this is the direction leftists plan to go so wake up America.
One of Barack Obama’s proposals to raise money for his “free” community college plan is to tax 529 college savings accounts which average only $20,000 an account.
These accounts are largely held by upper middle class and the money would be taken from them and given to the lower middle class in yet another redistribution scheme.
They want the upper middle class to pay for their own child’s college education and that of other peoples’ children as well.
The 529 is one of the very few middle class tax breaks currently allowed and the money has already been taxed.
The poor or lower middle class don’t pay taxes and the rich use loopholes to shift their money around, but the middle class just pays. The government wants to take this meager break away.
The reason they want to do this is because they are running out of money to pay for their grand freebie programs. The “rich” are paying 40% in taxes, 50% in blue states and more if they own a small business.
When a small elite group were taxed higher, the taxes were more symbolic than punitive the way they are now.
The goal in the end is to make us all dependent on government. In the case of college, we will all be dependent on government largesse. The government doesn’t want you to save and pay for your own child’s education.
The left doesn’t want savings, independence, inheritance, they don’t want any of it.
Fortunately, Congress is Republican and it won’t pass.