MIDDLE CLASS TAX HIKE: You know that “tax-free” 529 college plan? Obama wants to tax it. “By definition, these accounts are really only used by middle class families. Poorer households don’t have the extra income to save (and even if they have a little, there are much higher priorities like retirement or saving for a home). Very wealthy families might use 529 plans, but it’s far more likely that they have complex trust arrangements set up for their children. . . . Note that this is right before they also announce the repeal of Coverdell Education Savings Accounts (Coverdell ESAs), another similar move against the same middle class savings targets.”
[From the comments]
From the SOTU speech: ” And let’s close the loopholes that lead to inequality by allowing the top one percent to avoid paying taxes on their accumulated wealth.”
It’s not just IRAs and pension funds. He said “accumulated wealth.” That was the scariest line in the whole speech. I may not be rich, but I’ve got accumulated wealth. You do, too, and he’s going after that.
[This goes right along with that confiscation of stored food. Self-reliance is a trait to be punished.]