[ebaines]

I was really surprised that last week Obama proposed gutting college savings 529 accounts, presumably because the majority of the benefits of tax-free growth go to the wealthy (since they are the ones who can afford to put money into these types of accounts, and have the most to save on taxes as they are in higher tax brackets). He presented this as a way to shift more tax burden to the wealthy. But by that same reasoning we should also abolish IRAs (especially Roths) and 401k plans, because those who make more money are better able to take full advantage of them. Think of the uproaor if he had proposd that! Anyways, thankfully the Dems in Congress pushed back, hard, and so now it's dropped after just one week. Clearly this was not well thought out.

[tomder55]

I was really surprised that last week Obama proposed gutting college savings 529 accounts, presumably because the majority of the benefuts of tax-free growth go to the wealthy (since they are the ones who can afford to put money into these types of accounts, and have the most to save on taxes as they are in higher tax brackets).

His 1st false assumption is that only the rich use these accounts. He of course is dead wrong. The "middle class " use them . The rich can fund college educations without this program.
What you have to understand is that the emperor wants the people dependent on the benevolent government . That is why he would tax someone who tries to save on their own for college ;and turns around and proposes " free" college instead. The "free " part gets paid for by the elimination of the benefits received from the 529's .

[catonsville]

If you have a dollar the "Bummer" always has you on his mind.

[talaniman]

I would be happy with closing the 529 loophole of the 1%, for free two years of community college, but we can't even do that for bridges and roads.

[ebaines]

Would you close it for the 50% as well?

[NeedKarma]

and so now it's dropped after just one week.

He got some opposition from both sides:
Obama’s About-Face on 529 Plans Could Save the Middle Class a Bundle | The Fiscal Times

dropped by the administration in the face of vehement opposition from Republicans and Democrats alike, as well as state treasurers, financial firms, educational institutions and families.

Agreed that it wasn't well planned to have so much opposition.

[talaniman]

Would you close it for the 50% as well?

Naw just the top 1%. Seems congress could have agreed on a number between 0 and 100% anyway. Free two years of college and some roads and bridges. Naw, easier to be outraged and do NOTHING!

[tomder55]

at least stop using the misnomer "free " . Call it "subsidized " as someone actually has to pay for it .

[talaniman]

I will when you stop referring to the FREE market, the greatest wealth extraction tool ever invented.

[NeedKarma]

Score one for Tal LOL!

[tomder55]

in your case the word free means : without cost or payment.

in my case the word free means :made, done, or given voluntarily

[NeedKarma]

in my case the word free means :made, done, or given voluntarily

None apply in the current implementation of "free market".

[talaniman]

in my case the word free means :made, done, or given voluntarily

Yeah a GIFT to the rich from the sweat of the working poor. I ain't so sure about the voluntary, considering how stingy the trickle has been lately.

[tomder55]

The current implementation of the free market is not relevent since it is so regulated it can't possible be free.

[tomder55]

Yeah a GIFT to the rich from the sweat of the working poor. I ain't so sure about the voluntary, considering how stingy the trickle has been lately.

It's buyers and sellers allowed to transact freely based on a mutual agreement on price without state intervention in the form of taxes, subsidies or regulation.
Don't know where trickle applies . That Will Rogers phrase has something to do with tax policy ...not the free market.

[NeedKarma]

Yep, that's true, but to properly describe it you also have to pair that explanation with restricted economic mobility due to a healthy amount by the corporations that have too much control over the government and markets. And you will never get back to any semblance of a free market, that ship has sailed - you have no leverage whatsoever.

[talaniman]

Guess you are stuck on that FREE market huh Tom? Guess a free bridge, or road, or education or REAL free stuff isn't in your vocabulary.

[tomder55]

tal no it isn't . Someone pays for the stuff you call free. Maybe the professors should work for "free " too ? Maybe the workers building those bridges and roads should work for "free" too ? Face it ,you mean " subsidized ". You think someone else should pay for the things you benefit from.

[talaniman]

Oh I get it now, you mean voluntary slavery! Who gets to hold the whip? Geez Tom, if we all need bridges roads and an education who should pay for it? OOPS, I mean subsidize it.

Never mind, I see why there are no new road and bridges.

[joypulv]

I'm still waiting for the second home mortgage interest deduction to go away.
I mean, like, if you want to tax the wealthy and all....
But almost everyone in federal politics has a second home.