OT: 529 change proposal

[an]

[quote=livinincali][quote=CA renter]

Probably true about this not going anywhere with Republicans controlling congress; not sure it would pass with Democrats, either. It’s a bit like talking about eliminating the mortgage interest deduction…they can talk about it so that they sound tough, but it just isn’t going to happen (IMO).

They could only do this going forward. The uproar would be huge if they tried to do this to existing accounts.

Really, why would anyone invest in a 529 plan if it passed? It’s bad enough that there is a penalty if the money isn’t used for qualifying expenses…take the tax savings away, and I doubt that anyone would invest in one of these plans.[/quote]

Only 3% of families invest in 529 accounts. You win if you can give something away to the families that didn’t invest in 529 plans. It’s why I think the day is coming when they are going to do something with Roth accounts. For instance we’ll save you social security payment or boost it and in order to pay for it we’re going to retroactively tax Roth accounts. Yeah you piss off 10% of the population with Roth accounts but you satisfy a bigger percentage of people with the give away.[/quote]+1

[an]

[quote=flu][quote=harvey][quote=flu]I’d like to see folks try to defend this one….[/quote]

So have you actually looked at the numbers?

It doesn’t seem that these changes would result in a net increase in taxes for most families/students.

With the $2500 credit, it could be a net decrease.[/quote]

Except for households above the cap..[/quote]Cap is $180k as a couple or $90k as a single. Don’t you know that you’re rich when you make that much more than the middle class? Be happy that you’re rich and quit ya whining.

[Coronita]

[quote=AN][quote=flu][quote=harvey][quote=flu]I’d like to see folks try to defend this one….[/quote]

So have you actually looked at the numbers?

It doesn’t seem that these changes would result in a net increase in taxes for most families/students.

With the $2500 credit, it could be a net decrease.[/quote]

Except for households above the cap..[/quote]Cap is $180k as a couple or $90k as a single. Don’t you know that you’re rich when you make that much more than the middle class? Be happy that you’re rich and quit ya whining.[/quote]

So basically, almost every enginerd here in san diego that is single or every double income family in California that actually values their kid’s education…is…well screwed….

[Coronita]

Everytime I hear the word “free”… I’ve been accustomed to thinking “ok now, how much is this going to cost me…”

Lol

[an]

[quote=flu]Everytime I hear the word “free”… I’ve been accustomed to thinking “ok now, how much is this going to cost me…”

Lol[/quote]That’s the price of being rich 🙂

[Coronita]

[quote=AN][quote=flu]Everytime I hear the word “free”… I’ve been accustomed to thinking “ok now, how much is this going to cost me…”

Lol[/quote]That’s the price of being rich :-)[/quote]

Is that Obama “rich” or “rich rich”?

(couldn’t resist)

[an]

[quote=flu][quote=AN][quote=flu]Everytime I hear the word “free”… I’ve been accustomed to thinking “ok now, how much is this going to cost me…”

Lol[/quote]That’s the price of being rich :-)[/quote]

Is that Obama “rich” or “rich rich”?

(couldn’t resist)[/quote]
Same as lavish, rich only have one definition.

[Coronita]

[quote=AN][quote=flu][quote=AN][quote=flu]Everytime I hear the word “free”… I’ve been accustomed to thinking “ok now, how much is this going to cost me…”

Lol[/quote]That’s the price of being rich :-)[/quote]

Is that Obama “rich” or “rich rich”?

(couldn’t resist)[/quote]
Same as lavish, rich only have one definition.[/quote]

I prefer to be Hillary “flat broke” or Romney “middle class”

[scaredyclassic]

[quote=flu][quote=AN][quote=flu][quote=harvey][quote=flu]I’d like to see folks try to defend this one….[/quote]

So have you actually looked at the numbers?

It doesn’t seem that these changes would result in a net increase in taxes for most families/students.

With the $2500 credit, it could be a net decrease.[/quote]

Except for households above the cap..[/quote]Cap is $180k as a couple or $90k as a single. Don’t you know that you’re rich when you make that much more than the middle class? Be happy that you’re rich and quit ya whining.[/quote]

So basically, almost every enginerd here in san diego that is single or every double income family in California that actually values their kid’s education…is…well screwed….[/quote]

you can value learning and go to call state and pay little. In my uneducated but semi informed opinion the engineering program at SDSU is very good or at least good enough. We write a small check each semester. My kids on the dean’s list and I don’t think he studies relentlessly, socompetition must be reasonable.

[skerzz]

[quote=scaredyclassic][quote=flu][quote=AN][quote=flu][quote=harvey][quote=flu]I’d like to see folks try to defend this one….[/quote]

So have you actually looked at the numbers?

It doesn’t seem that these changes would result in a net increase in taxes for most families/students.

With the $2500 credit, it could be a net decrease.[/quote]

Except for households above the cap..[/quote]Cap is $180k as a couple or $90k as a single. Don’t you know that you’re rich when you make that much more than the middle class? Be happy that you’re rich and quit ya whining.[/quote]

So basically, almost every enginerd here in san diego that is single or every double income family in California that actually values their kid’s education…is…well screwed….[/quote]

you can value learning and go to call state and pay little. In my uneducated but semi informed opinion the engineering program at SDSU is very good or at least good enough. We write a small check each semester. My kids on the dean’s list and I don’t think he studies relentlessly, socompetition must be reasonable.[/quote]

Shhh… Don’t give away the Cal State secret or it won’t be affordable for much longer. Actually, The accounting program at SDSU is a decent option, join the right firm out of school and you’ll be making enough to be considered “rich” within 4-5 years. I do get a kick out of those who racked up big college debt at an elite school only to land the same job my sdsu degree got me.

[Coronita]

[quote=scaredyclassic][quote=flu][quote=AN][quote=flu][quote=harvey][quote=flu]I’d like to see folks try to defend this one….[/quote]

So have you actually looked at the numbers?

It doesn’t seem that these changes would result in a net increase in taxes for most families/students.

With the $2500 credit, it could be a net decrease.[/quote]

Except for households above the cap..[/quote]Cap is $180k as a couple or $90k as a single. Don’t you know that you’re rich when you make that much more than the middle class? Be happy that you’re rich and quit ya whining.[/quote]

So basically, almost every enginerd here in san diego that is single or every double income family in California that actually values their kid’s education…is…well screwed….[/quote]

you can value learning and go to call state and pay little. In my uneducated but semi informed opinion the engineering program at SDSU is very good or at least good enough. We write a small check each semester. My kids on the dean’s list and I don’t think he studies relentlessly, socompetition must be reasonable.[/quote]

That’s great for people that didn’t already dump their money into a 529….Not so great for people already with a 529…But I reread the taxable withdrawal rules of the 529…just in case….Principal amount can be withdrawn without a penalty, earnings get taxed with a 10% penalty…unless your kid get a nontaxable scholarship, for which the same amount can be withdrawn without penalty,subject to ordinary income taxes i think.

Anyway, I doubt this will pass. And besides, if there really ends up being free community college, I’ll be signing up for as many auto body/mechanic shop, photography, graphic artist, woodshop, real estate broker, and metallurgy classes as possible, even though it will be only to fulfill my hobbies…..hopefully, taxpayers paid of course 🙂

[Coronita]

I wonder why Obama/Democrats didn’t go after the carried interest loophole that hedge funds and private equity managers enjoy…

I wonder why Obama/Democrats didn’t listen to Warren Buffett and try to propose the “Buffett Rule”, which would have been an explicit tax on the “rich”

Instead, they want to tax the 529 plan? Really?….

[livinincali]

[quote=flu]I wonder why Obama/Democrats didn’t go after the carried interest loophole that hedge funds and private equity managers enjoy…

I wonder why Obama/Democrats didn’t listen to Warren Buffett and try to propose the “Buffett Rule”, which would have been an explicit tax on the “rich”

Instead, they want to tax the 529 plan? Really?….[/quote]

529 plan holders are a small group and don’t have lobbyists to fight for them. Easy target that will produce little uproar and of course little income.

[Coronita]

[quote=livinincali][quote=flu]I wonder why Obama/Democrats didn’t go after the carried interest loophole that hedge funds and private equity managers enjoy…

I wonder why Obama/Democrats didn’t listen to Warren Buffett and try to propose the “Buffett Rule”, which would have been an explicit tax on the “rich”

Instead, they want to tax the 529 plan? Really?….[/quote]

529 plan holders are a small group and don’t have lobbyists to fight for them. Easy target that will produce little uproar and of course little income.[/quote]

So basically what you are say is Obama/Democrats are bullies that like to pick on the minority of financially responsible people that went out of their way to try to save/invest in their family’s future…because they are an easy target… no different than a classroom bully that goes after the kid that is the weakest in the class…knowing that no one is really going to help them….

yup, that pretty much sums it up…

[livinincali]

[quote=flu]
So basically what you are say is Obama/Democrats are bullies that like to pick on the minority of financially responsible people that went out of their way to try to save/invest in their family’s future…because they are an easy target… no different than a classroom bully that goes after the kid that is the weakest in the class…knowing that no one is really going to help them….

yup, that pretty much sums it up…[/quote]

Not saying it’s right but everybody likes an easy target. It’s why the founding fathers wrote the Constitution the way they did. They knew a pure democracy eventually involves majorities repressing the minorities. In this case the minority is 529 saving account holders. Taking away a tax benefit isn’t unconstitutional, it’s why I like to stay far away from deferred benefits promised by governments. They are under no obligation to keep those promises and the people that made those promises are long gone by the time they come due.

[Author]

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