Obama Killing 529 College Savings Plans...To Help The Middle Class.

On Tuesday President Obama stood in front of the country and said he was working hard to strengthen the Middle Class. He was going after the Rich to pay their fair share and his main concern was the middle class. (Wink Wink)

On Thursday President Obama showed once again he is dishonest as he began his latest attack on the Middle Class.

529 College Savings Plans are what the Middle Class use to save for college. President Obama wants to kill them. He would rather you just have your kids take on a life time of debt than be incentivized to save money.

A lifetime of Debt is a lot more helpful to Wall Street Bankers than you saving money. Wall Street Bankers are Obama’s main concern.

Since Obama hates the Middle Class, and Republicans also hate the middle class, this will be passed and everyone will claim victory.

Republicans will gloat about compromising with the President and everyone will proclaim success. When it comes to screwing the Middle Class there is no disagreement. Lets get it done.

http://www.nytimes.com/…/obamas-proposed-changes-to-529-col…

President Obama is proposing a radical change to the 529 college savings plans held by millions of families, which would require those who use them to rethink their approach to college savings.

As part of his plan to simplify the tax code and help the middle class, one of the 529 plan’s most attractive benefits would be eliminated: Money could no longer be withdrawn tax-free. (The new rules would apply only to new contributions.)

The accounts, many of which are run by the states, allow people to make contributions that grow tax-free. The money can be withdrawn without the paying of capital gains taxes as long as the proceeds are used for education expenses. Many states provide state income tax deductions for contributions as well.

“I was very surprised by the Obama 529 proposal because in many ways it is anti-middle class for families trying to afford college,” said Joe Hurley, founder of the SavingforCollege.com website. “And so much of the emphasis in the Obama administration has been pro-middle class.” (Wink Wink)

The proposed changes — which many experts say would be difficult to pass (Not really) in a Republican-controlled Congress — would discourage savers from using the accounts because the withdrawals would be taxed as ordinary income. Because that income will be recognized on families’ tax returns, it is also likely to reduce how much they may receive in federal financial aid,

Mr. Hurley of SavingforCollege.com said he would expect 529 contributions to dry up immediately, which would hurt the plans’ financial positions. “States that are not able to retain sufficient assets in their 529 plans will have a difficult time keeping their plans open,” he added.