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News & Current Events Discuss Obama adviser defends proposal to tax college savings plans at the General Forum; Obama adviser defends proposal to tax college savings plans By Joseph Lawler | January 23, 2015 | 12:01 pm Photo ...

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Old 01-25-2015, 11:52 AM
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Default Obama adviser defends proposal to tax college savings plans

Obama adviser defends proposal to tax college savings plans
By Joseph Lawler | January 23, 2015 | 12:01 pm
Photo - Council of Economic Advisers Chairman Jason Furman speaks about the economy during the White House daily news briefing in Washington, Tuesday, Dec. 16, 2014. (AP Photo/Jacquelyn Martin) Council of Economic Advisers Chairman Jason Furman speaks about the economy during the White...

President Obama's top economic adviser on Friday defended the administration's proposal to limit a tax break for college savings against conservative criticism that it amounted to a tax hike on middle-class families.

Obama's proposal, introduced before Tuesday's State of the Union Address, would tax withdrawals from the college savings plans created under section 529 of the tax code, and expand other tax incentives for college-goers.

Chairman of the White House Council of Economic Advisers Jason Furman defended the change in an interview with Bloomberg News Friday, saying that the president's plan as a whole created more tax savings for college than it took away with the section 529 plan.

"Overwhelmingly, this plan provides much more of a tax incentive, much more assistance through the tax code to go to college than anything that we have in our system now," Furman said, according to Bloomberg's account.
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Furman said that the existing section 529 provision mostly benefits higher-income earners, and is "ineffective in serving its goals of getting people to go to college who wouldn’t otherwise have gone." Under the current tax code, section 529 creates savings accounts with earnings that are not subject to federal tax if they are used for college expenses.

Since the proposal was first introduced Saturday night, conservatives have decried it as a threat to middle-class college aspirations.

Ryan Ellis, a tax policy analyst at the conservative group Americans for Tax Reform, wrote in Forbes Wednesday that the proposal was an assault on the middle class. "It’s an attack on their values, an attack on their version of the American Dream, and an attack on their own personal aspirations as parents," he claimed.

Congressional Republicans have seized on that rhetoric, claiming that the proposal runs counter to the "middle-class economics" rhetoric the president used in promoting his plans.

But the administration has noted that the average family that makes use of section 529 plans has significantly higher earners than the average family of the U.S. as whole.

Furman told Bloomberg that the administration's plan to limit the tax benefits of section 529 would raise $1 billion in tax revenues during the 10-year budget window, while the administration's college proposals as a whole would yield $50 billion tax cuts.
Obama adviser defends proposal to tax college savings plans | WashingtonExaminer.com
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Old 01-25-2015, 12:16 PM
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Default Re: Obama adviser defends proposal to tax college savings plans

o no tax while saving but tax when spending. like when you buy a bond in your grandson's name
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Old 01-25-2015, 12:31 PM
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Default Re: Obama adviser defends proposal to tax college savings plans

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Originally Posted by Jackass master View Post
Obama adviser defends proposal to tax college savings plans
By Joseph Lawler | January 23, 2015 | 12:01 pm
Photo - Council of Economic Advisers Chairman Jason Furman speaks about the economy during the White House daily news briefing in Washington, Tuesday, Dec. 16, 2014. (AP Photo/Jacquelyn Martin) Council of Economic Advisers Chairman Jason Furman speaks about the economy during the White...

President Obama's top economic adviser on Friday defended the administration's proposal to limit a tax break for college savings against conservative criticism that it amounted to a tax hike on middle-class families.

Obama's proposal, introduced before Tuesday's State of the Union Address, would tax withdrawals from the college savings plans created under section 529 of the tax code, and expand other tax incentives for college-goers.

Chairman of the White House Council of Economic Advisers Jason Furman defended the change in an interview with Bloomberg News Friday, saying that the president's plan as a whole created more tax savings for college than it took away with the section 529 plan.

"Overwhelmingly, this plan provides much more of a tax incentive, much more assistance through the tax code to go to college than anything that we have in our system now," Furman said, according to Bloomberg's account.
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Furman said that the existing section 529 provision mostly benefits higher-income earners, and is "ineffective in serving its goals of getting people to go to college who wouldn’t otherwise have gone." Under the current tax code, section 529 creates savings accounts with earnings that are not subject to federal tax if they are used for college expenses.

Since the proposal was first introduced Saturday night, conservatives have decried it as a threat to middle-class college aspirations.

Ryan Ellis, a tax policy analyst at the conservative group Americans for Tax Reform, wrote in Forbes Wednesday that the proposal was an assault on the middle class. "It’s an attack on their values, an attack on their version of the American Dream, and an attack on their own personal aspirations as parents," he claimed.

Congressional Republicans have seized on that rhetoric, claiming that the proposal runs counter to the "middle-class economics" rhetoric the president used in promoting his plans.

But the administration has noted that the average family that makes use of section 529 plans has significantly higher earners than the average family of the U.S. as whole.

Furman told Bloomberg that the administration's plan to limit the tax benefits of section 529 would raise $1 billion in tax revenues during the 10-year budget window, while the administration's college proposals as a whole would yield $50 billion tax cuts.
Obama adviser defends proposal to tax college savings plans | WashingtonExaminer.com
And yet, those free college for everyone plans proposed by Obama would presumably not be taxed.

IOW, if you work for it, and save for it, it gets taxed.

If, on the other hand, it is yet another "free" handout, no tax is applicable.
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Old 01-25-2015, 07:53 PM
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Default Re: Obama adviser defends proposal to tax college savings plans

Yet one more little step towards depending on the gubmit for all things.

"You didn't make that" may someday be true.
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Old 01-26-2015, 04:59 AM
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Default Re: Obama adviser defends proposal to tax college savings plans

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And yet, those free college for everyone plans proposed by Obama would presumably not be taxed.

IOW, if you work for it, and save for it, it gets taxed.

If, on the other hand, it is yet another "free" handout, no tax is applicable.
Why in the world would the government start taxing the savings plans of students and parents saving for college, when colleges are so overpriced anyways and their product, a degree, is just about useless in America anyways due to the lack of jobs?

If you are in a high tax bracket that affords you the opportunity to send a student to an Ivy League-level school like Harvard, William & Mary, Emery, or Stanford, what is the difference between that families contribution to the college tuition, and that of the lower income student's families who have to depend on a bevy of scholarships in the $5,700 hundred dollar range to send their son or daughter to school. It is going to cost at least $25,000 to get a college education even at a trade or internet school, in Florida, the cheapest you can get in and out of a private school is for $22.000 a year. The University of Miami is at an outlandish $67,000 a year, while Florida and Florida State are in the $50,000 a year range.

Taxing savings for college, which has to begin in early childhood now, because the rates are just going to go up anyways as the years go by, sounds like a government ripoff - what was their alternative to the poorer families, desperately attempting to round up the monies to pay for their students to attend a decent school? This is no tax the rich ripoff, it is a tax ripoff period. When is Harvard, Yale, Dartmouth, Brown, Cornell, NYU, Rice, Stanford, William & Mary, Georgetown, going to cut their tuition prices, or have the government come in and cut them for them as a tax, so students with sufficient grades can make it through their courses?

Letting Obama and his ilk play with America's tax code, which we already have seen them use it illegally for political purposes, is the same as allowing Arhmed The Terrorist to play with dynamite..........STFN
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Old 01-26-2015, 11:16 AM
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Default Re: Obama adviser defends proposal to tax college savings plans

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Originally Posted by saltwn View Post
o no tax while saving but tax when spending. like when you buy a bond in your grandson's name
Hopefully, some day you will - 'get it' Salty.

as in 'understand'.
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Old 01-28-2015, 12:04 PM
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Default Re: Obama adviser defends proposal to tax college savings plans

Finally...Obama created some bipartisanship...Both sides thought he's an idiot...

White House Drops Plan to Scale Back College Savings Plans

Quote:
he White House said Tuesday it is dropping a proposal to scale back the tax benefits of college savings plans amid a backlash from both Republicans and Democrats.

President Barack Obama made the proposal last week as part of his State of the Union address. It was part of Obama's plan to consolidate and simplify a sometimes confusing array of tax breaks for college students.

Resistance from Congress was swift. Republicans publicly criticized the plan, and aides said House Democratic Leader Nancy Pelosi pushed senior administration officials to drop it as she flew with the president aboard Air Force One from India to Saudi Arabia.

Other Democrats also privately weighed in against the plan, including Rep. Chris Van Hollen of Maryland, the top Democrat on the House Budget Committee, and Sen. Charles Schumer, D-N.Y.

A White House official said Tuesday the proposal had become a distraction.
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Old 01-28-2015, 12:14 PM
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Default Re: Obama adviser defends proposal to tax college savings plans

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Finally...Obama created some bipartisanship...Both sides thought he's an idiot...

White House Drops Plan to Scale Back College Savings Plans

I doubt this was a plan to raise more revenue but to balance the inequities of those families who provide for their children and those who don't. Put in conjunction with the two "Free" years of Junior College it was a subtle attempt at "cradle to adulthood" government control of child care.

Given the prominence of government subsidies for child care, to pre school then K thru 12 and now 13&14, by the time our children reach 21 they will be well prepared to live in mom's basement.
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Old 01-28-2015, 12:36 PM
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Default Re: Obama adviser defends proposal to tax college savings plans

Amazing that a president can tout this at a State of the Union and then, two weeks later, say "Nevermind!"...
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