According to the Washington Examiner, President Obama has proposed a tax hike in every single State of the Union since 2009. Is it a surprise? Even CNN is calling him Robin Hood, stealing from the rich to give to the poor. For not the first time, Obama isn’t stealing from the rich to pay for his economic populism, he’s stealing from the middle class. If you’re a parent saving for your kids’ college education, Obama’s latest scheme is sure to send your blood pressure rising.
One of Obama’s grand schemes up for debate at the State of the Union is the idea of “free” (i.e. state-sponsored) community college educations for every American. There’s plenty of commentary from the conservative media (the mainstream media refuses to touch it, though CNBC does a good job) explaining how it is anything but free.
Many of the comments cited previously were written before Obama released how he plans to pay for this “free” plan, which doesn’t come free to Americans. Now the cat is out of the bag. How does Obama plan to pay for his scheme? By penalizing families who are already saving for their kids’ college education, among other things. Under current tax law, socking money away in a 529 education savings account is tax-free, both upon putting money in and upon withdrawing it, as long as the withdrawal is for an education-related expense like tuition or room and board. Under Obama’s scheme, which thankfully would have to pass Congress, both the deposit and the withdrawal would be taxable, taking away much of the incentive for families to save at all. Americans for Tax Reform lay out the details on this tax hike and many others.
H/T to Sean Davis
Comment below: Is this Obama’s most outrageous tax-hike yet?