Obama’s latest scheme to ‘spread the wealth around’ comes in the form of promising free community college on one hand while double-taxing students who were responsible enough to plan ahead on the other.
The formidable organization released a detailed description of the $320 billion tax hike being proposed and noted that one of the ways in which Obama would like to pay for this “free” community college is to penalize those who planned accordingly.The report reads: (emphasis added)On Saturday night the White House leaked the major tax hike details of the president’s upcoming budget. The common theme is higher taxes on savings and investment, totaling $320 billion over the next ten years.“Democrats are demanding, yet again, tax increases on America. This never ends. When it comes to tax hikes Democrats are like a teenage boy on a prom date: they keep asking the same question different ways but always to the same point,” said Grover Norquist, president of Americans for Tax Reform.Here are the major tax increases in the President’s upcoming budget:1. Capital Gains Rate Hike: raises capital gains and dividends tax rate from 23.8% today (20% plus 3.8% Obamacare surtax) to 28% (including the Obamacare surtax).The capital gains tax has not been that high since President Clinton signed a rate cut in 1997.It would represent a massive hike in the rate since Obama took office. When he was sworn in, the rate was 15%. He proposes to nearly double it to 28% in the twilight of his administration.2. Stealth increase in the death tax rate from 40% to nearly 60%.Under current law, when you inherit an asset your basis in the asset is the higher of the fair market value at the time of death or the decedent’s original basis. Almost always, the fair market value is higher.Under the Obama proposal, when you inherit an asset your basis will simply be the decedent’s original basis.Example: Dad buys a house for $10,000. He dies and leaves it to you. The fair market value on the date of death is $100,000. You sell it for $120,000. Under current law, you have a capital gain of $20,000 (sales price of $120,000 less step up in basis of $100,000). Under the Obama plan, you have a capital gain of $110,000 (sales price of $120,000 less original basis of $10,000).There are exemptions for most households, but this misses the larger point: the whole reason we have step up in basis is because we have a death tax. If you are going to hold an estate liable for tax, you can’t then hold the estate liable for tax again when the inheritor sells it. This adds yet another redundant layer of tax on savings and investment. It’s a huge tax hike on family farms and small businesses.It’s like a second death tax (the first one has a top tax rate of 40% and a standard deduction of $5.3 million/$10.6 million for surviving spouses). Conceivably, an accumulated capital gain could face a 40% death tax levy and then a 28% capital gains tax on what is left. Do the math, and that’s an integrated federal tax of just under 60% on inherited capital gains.3. “Bank Tax”A new 7 basis point (0.07%) tax on the liabilities (not assets) of the 100 or so U.S. firms with assets over $50 billion. This will obviously be passed along to these firms’ customers and employees, since businesses don’t pay taxes–people do.4. Tax Increase on Families Saving for CollegeUnder current law, 529 plans work like Roth IRAs: you put money in, and the money grows tax-free for college. Distributions are tax-free provided they are to pay for college.Under the Obama plan, earnings growth in a 529 plan would no longer be tax-free. Instead, earnings would face taxation upon withdrawal, even if the withdrawal is to pay for college. This was the law prior to 2001.5. Tax Increases in Retirement Plans and a New Employer MandateThere would be a new cap in the amount one could accumulate in the aggregate in all IRA and 401(k) type accounts of $3.4 million. After that, you can’t save any more new dollars. The idea is that this is enough to secure a $210,000 annual distribution in retirement, which the government apparently deems “enough” for a retiree.In addition, all employers with more than 10 workers and who do not have a 401(k) type plan would be mandated to set up payroll deduction Traditional IRAs for their employees. Also, part-time workers would have to be covered under retirement plans if they have been working someplace long enough. These two things are a new kind of employer mandate from Obama.
And I work from home don’t need any of you guys money my man has plenty of money working two jobs sorry your hate is direct to the wrong person
Idiot !
Nothing he does is free. Taxpayers will be paying for the free college, even the people who could not afford to send their own kids to college.
Carol Taylor ..these ranting facebook racist will feel it when the republicans get their greedy hands around their stupid blind white necks and choke them with same policies that they are knowing voting them for..thinking it wint affect me cause im white and I vites for u…and that same republican goon will put his Italian leather shoe on there foreheads,before pushing them to the slums they created,asking are you a 1percenter…no sir.well down u go…u r left crying iiiii voted for you…help me I Thought you were just against the black folks
Free college is about so much more than another hand out, America, it is about CONTROL…PERIOD… WAKE UP AMERICA.
Middle class will pay for that…,Socialism is frustrating for the poor.
Millionaires hide their $$$
In foreign countries . Now upper & middle class will foot the BILLS for all the FREE LOADERS!!!! Start reporting these people who can work & get around the system!!!!
Now all you numb nuts know how he will pay for all that “free Colege” !
He so loves to devise ways to spend our money, and devide our leaders, L
How many of you have ever made a pie that didn’t turn out right or put in the wrong ingredients then piled sugary meringue on top to make it taste better. Reminds me of the State of the Union Address; once the sugary meringue is gone, all that is left is the disaster pie. Although it has been around for six years now, if you have never tasted American Disaster Pie, you may be in for the surprise of a lifetime. Here is the recipe with the ingredients: One large mixing bowl full of government-mandated ObamaCare with exemptions for Capitol Hill, Unions, and the President’s hand picked special interest groups tossed out. One large bowl of egotistical leadership dysfunction combined with socialist ideology and failure to recognize Islamic terrorist. One cup of increased taxation. One cup of lies. One cup of corruption. Ten cups of deceit. One cup of intentionally made false promises for the purpose of winning an election. Two cups of blame (add another cup if one isn’t enough). A heaping tablespoon of voter fraud. One level teaspoon full of voter intimidation. A very large amount of borrowed money from other countries. Nine trillion dollars of increased debt; Increase the debit if necessary. A quart of political hogwash. One stack of devalued American dollars (finely shredded). One Bengasi scandal complete with a Hillary cover-up. One IRS scandal that targets Tea Party members. One illegal domestic spying scandal. A few international spying scandals. Six years of informing America’s enemies of our military strategies. A ton of American disgrace in the world. A good dose of circumventing the American Constitution. Open borders with illegal immigration and illegal immigration amnesty Millions of job losses combined with 11 million workers no longer seeking employment. Fifty million Americans on welfare. One pot of decreasing family income. One large amount of inflation looming on the horizon. One very large scoop of shattered hopes and dreams of millions of duped Americans who earnestly believed Obama’s economic policies would actually help middle class Americans and raise their standard of living. One House Minority Leader with myopic economic concepts and delusional economic conclusions who says Congress has to pass a bill to see what is in it. Every Democrat and Republican lawmaker who can not comprehend spending priorities, giving away millions of dollars to foreign countries, the devastating economic effect of Obamacare, or the economic disaster of increasing America’s debt. One whole slew of clueless, gutless, Congressional cronies. One heaping helping (6 years worth) of main stream news media indifference that has resulted in a decreased middle class and millions of Americans still out of work. The final ingredient for American Disaster Pie is one go-to race-mongering miscreant and con-man pimp, who is nothing more than a tax evading, money hustling charlatan who will, with the President’s endorsement and regardless of the harmful outcome that results from his disgraceful actions of promoting racial hatred, do everything he can to incite violence purely for racial division, notoriety, extortion, and personal monetary gain. Mix the ingredients, cook to the boiling point, then fold in a heaping helping of main stream news media indifference combined with Americans who have lost their jobs and healthcare; stir in the race-mongering pimp, an ample amount of hogwash, and one scandal after the other, then sprinkle with devalued American dollars, and serve to the American people while it is still hot. If the American Disaster Pie is still not sweet enough, throw in enough opinionated left wing reporters to explain that what the President said is not actually what the President said and everyone that disagrees is a racist. Suggestion: American Disaster Pie tastes better if you close your eyes to the facts, wear earplugs to prevent hearing the truth, close your mind to rational thought, and hold your nose while swallowing.