529 Plans: Obama’s Lies, Broken Promises and Hypocrisy on Display AGAIN as They Make War on The Middle Class

Barack Obama wants everyone to go to college, right? He’s been jetting across the country, lying to audiences of squealing, clapping backward children about that ever since he rolled out his idea for “free” community college.

So why would he propose destroying one of the methods that middle class families have been using to save to send their kids to college, the so-called “529” plans? From the Wall Street Journal:

A White House proposal to trim tax benefits of popular college-savings accounts is stirring opposition in Congress, and complicating negotiations over efforts to streamline education tax breaks.

The proposal, part of a tax plan released by President Barack Obama over the weekend, would scale back a significant break that Republicans generally want to preserve—taxpayers’ ability to use money earned in 529 college-savings plans on a tax-free basis.

When the article says that taxpayers’ get to use the money earned in these plans “tax-free,” understand that contributions to these plans are made with AFTER-TAX income. In other words, it has been taxed once, but of course, that’s not enough for the insatiable appetite of the Left.

A few things to consider:

(1) Not only is this proposal a knife in the heart of the “middle class” that Obama claims to put at the top of his priority list of the deserving, it belies his claims to want to help young people go to college. Perhaps we misunderstood what he meant. Perhaps he meant he wants everyone, other than the very wealthy, to be able to attend community college because it isn’t “fair” for the Ward and June Cleavers of the world to save so that their children can attend a 4-year college, while the illegitimate kids of the irresponsible, illegal immigrants and other members of his mascot groups can’t. Think of it this way: just as it is “unfair” for the children of middle class parents who work “behind enemy lines” for evil Corporate America to have medical insurance, and therefore better medical care than the children of serial sperm donors and their baby mamas, it’s unfair for them to have access to better educational opportunities. I can hear you saying “but wait, their parents are working, while the parents of these unfortunate children are living off taxpayers?” In Obama’s mind, that’s all the more reason that payback needs to be administered to the beneficiaries of white privilege.

(2) This proposal is yet another broken campaign promise, which at this point, given the dozens and dozens of lies he’s told,  I realize barely rates a passing note, but as long as we’re on the subject of these plans, I’ll remind you. From Americans for Tax Reform:

This middle class income tax increase is a clear violation of President Obama’s “firm pledge” against “any form of tax increase” on any family making less than $250,000. This promise to the American people is documented below:

Speaking in Dover, New Hampshire on Sept. 12, 2008, candidate Obama said:

“I can make a firm pledge. Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.”

(3) Here’s the best part. The Obamas themselves took advantage of a 529 plan back in 2007. From Forbes:

[B]ack in 2007, Barack and Michelle Obama made a stunning $240,000 contribution to the 529 plans of their two daughters. There’s a special provision in 529 tax rules that allow for a “jumbo” contribution in exchange for not gifting any more money to your kids for the next five years. The Obamas (wisely) took advantage of this–you can see the actual tax form reporting here.

This is odd, considering some of the nasty things the White House has said about 529 plans in recent days. Administration officials have called 529 plans “inefficient,” that 80% of the benefits accrue to those making more than $250,000 per year, and that 529 plans should effectively be repealed in order to plus up an education tax credit. Obama Administration mouthpiece Slate went so far as to call de facto 529 repeal “a great idea.”

Of course, under his proposal, the Obamas’ contribution will be grandfathered under the old rules, and they will therefore be able to with to withdraw the funds and the accrued interest tax-free.

There is not enough Febreeze on the planet to extinguish the reeking stench of hypocrisy, lies and broken promises from this repellant pair of race-hustling grifters.

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