s/o petition to stop 529 tax

[Mopey]

I'm just wondering when they're going to start passing laws to pilfer pensions with that 18 trillion dollar debt looming. I hate how blind and stupid it seems everyone in our gov't acts.

[Binkandabee]

I would be in favor of phasing it out just like Roth Iras are.

[westwoodmom04]

But the R's penalize salaried workers even more than Dems, they won't hear of taxing capital gains and want to get rid of estate taxes, etc. I don't see how voting against Dem's is going to help go after the "truly wealthy." I wish our money was from a trust fund instead of the incredibly hard work of my husband! We would be much better off under the tax code sadly. We have fully funded prepaid tuition plan for all three kids, that was a screaming deal in our state. Our financial person (not really adviser since we decide) suggested we shield more money in 529's as there are all sorts of ways to get at it that are not really educational. And even if you don't use it educationally, if we waited until retirement we would be in a lower tax bracket and so what if we had to pay some taxes - it would be a great deal. So, for those of us with disposable income to tie up, the current 529 is a great subsidy/give away. Good for me but subsidized by people on this board who are saving a little at a time. I am fine with exploring ways to make things more equitable and have paid off plenty of student loans (neither of us had any parent support for college, both of us went to law school). The way the 529 was originally enacted did not provide tax free withdrawals either, that was a crutch during economic dark times that got grandfathered in permanently.

I agree with this. the carried interest loophole is also beyond ridiculous. And nothing Obama proposes will be passed by this a Congress.

[blisstwins]

I agree with this. the carried interest loophole is also beyond ridiculous. And nothing Obama proposes will be passed by this a Congress.

Right....I think my frustration is that there is a HUGE difference between something like the carried interest loophole and those who benefit from it, and a family like ours trying to make sure our kids and go to any college--public or private--without graduating with crippling debt. We won't qualify for aid and 140k per year
(twins) is STEEP by any any measure. There are caps on how much can be put into a 529 and restrictions on its use. To me, this is indiscriminate class warfare and it makes really hard for me to be excited about other initiatives I do support.

[anonomom]

The truth is, if a person is making a quarter of a million dollars, they are rich. Full stop. At 250, that person makes more than 95% of the people in this county. It doesn't matter if one has loans or wants to send their kids to a private college or hasn't yet saved for retirement. There are millions upon millions of people in this country who can't even begin to hope to do any of that stuff because even though they work hard, they don't make enough to pay their current bills, let alone worry about the future.

I understand the feeling that however much money one happens to have is "not rich" and that the truly rich people are some mythical other. DH honestly believes we're middle class, though we fit into the top 10%, income wise. And of course it's human nature to want to keep all of the things we feel we've earned. But the government cannot and should not allow people's subjective definitions of "rich" dictate policy. I think reinstating the tax on 529 money is a good idea.

[blisstwins]

The truth is, if a person is making a quarter of a million dollars, they are rich. Full stop. At 250, that person makes more than 95% of the people in this county. It doesn't matter if one has loans or wants to send their kids to a private college or hasn't yet saved for retirement. There are millions upon millions of people in this country who can't even begin to hope to do any of that stuff because even though they work hard, they don't make enough to pay their current bills, let alone worry about the future.

I understand the feeling that however much money one happens to have is "not rich" and that the truly rich people are some mythical other. DH honestly believes we're middle class, though we fit into the top 10%, income wise. And of course it's human nature to want to keep all of the things we feel we've earned. But the government cannot and should not allow people's subjective definitions of "rich" dictate policy. I think reinstating the tax on 529 money is a good idea.

Harsh.

Much else to debate, but this feel personal and judgmental.

[*myfoursons]

Harsh.

Much else to debate, but this feel personal and judgmental.

Super harsh, imo, too. We're in the unicorn 1%, like many others on this board, but we're way at the bottom. I shop at Target, Old Navy, etc. Our home isn't a mansion, I drive a minivan and my husband drives a Hyundai. DH Works very hard for his money, and makes his company tons. He gets paid accordingly. We have 4 kids to put through college, and we knew what we were getting into when we decided to have that many children. I vote democrat, but it's more for social issues.

I get sick of what I see as pandering, when the over-taxing the demonized 1% is held up as the solution to any issue. It's not going to hurt the truly rich, they're hiding assets and working around tax codes. It only is going to hit families like mine, who happen to have made a success of themselves. Even though both sets of our parents didn't go to college. Pull yourselves up by your bootstraps, but not too high. Or we're going to take it all away from you. I know other families work just as hard, and don't make nearly as much as mine. I get that, but the solution isn't simply slapping on more taxes.

[anonomom]

Judgmental, yes. But not harsh. I think that society has an obligation to help those that most need it, not to subsidize the lifestyles of those who are already financially comfortable. And accomplishing the former means abolishing giveaways to the latter, then I'm on board.

[JBaxter]

its not a person its a FAMILY making 250. It wouldn't be hard if you had 2 college educated upper management professionals working in a family. But if they both had loans from undergrad and grad school trying to buy a house in a HCOL area with child care there isn't much left.

[iaam]

I totally agree with you. Obama likes to penalize salaried workers who work hard and are successful. It's crazy. This doesn't really affect the truly wealthy. This is why I no longer vote D even though I don't really like Rs from a social standpoint.

I agree completely. I wil go further and say that the "class wars" that Obama has started are nothing but counterproductive and will not solve any issues. I believe that there are issues to be solved with respect to income inequality, but that's going to take a lot more work and real reform, which no one seems to want to do. In my opinion, he is propagating the rich = evil sentiment and I am personally sick of it.