Obama Took Advantage of 529s — Before He Killed ‘em
25th January 2015
As noted at The College Fix back on January 20, one of the ideas you’ll not likely hear about in President Obama’s tax machinations is the repeal of tax-free 529 college saving plans.
The president wants these plans now to be taxed as ordinary income, with as rates as high as 39.6%.
529 plan expert Joe Hurley says this “will result in their effective repeal, as new contributions in will ‘dry up’ overnight.”
But ironically, Mr. Obama took quite advantage of 529 tax rules back in 2007.
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Forbes writer Ryan Ellis points out this presidential hypocrisy is not unlike that from 2009 when the president wanted to nix 1,700 low income school scholarships for kids in Washington DC … all the while sending his daughters to the exclusive Sidwell Friends School.
January 25th, 2015 at 22:14
When money piles up in one place – like the 529 or IRAs or any successful business – the government is going to view it the same way a flock of buzzards view a dead cow.