A Tacky, Tactless Tax Attack on College Savings Plans Best Left Intact

ALPERN AT LARGE-Hidden in the recent let's-get-past-politics-but-here's-a-few-partisan-zingers-anyway State of the Union speech by President Obama was a taxing of 529 college saving accounts trial balloon that was, thankfully, recognized as a tacky and tactless lead balloon by both Congressional Republicans and Democrats. 

Taxing 529 college savings accounts?  Why not throw new taxes on pensions, IRA's and 401(k) accounts, why we're at it? 

Oh, yeah, that's coming next. 

For those of us with children in college, or who anticipate their future attendance in college, taxing our 529 college savings accounts is an expensive proposition that leaves most of us terrified.  It's therefore a greater question than the impropriety of the tax proposal itself to ask:  what's next? 

To suggest that all taxes are inappropriate is one that might serve the Grover Norquist crowd well, but ... ARE our taxes being spent well? 

To suggest that the President wants more taxes is a certainty, but...will THEY be spent well? 

If the "stimulus package" is any indication, and the lack of transparency of spending from the federal government is any indication (with Republican and Democrat excesses pretty obvious to the average taxpayer), the answer is: NO.  

The money wasn't, isn't and won't be spent well. 

And if the taxpayers doth protest, well...they clearly are either hateful to veterans, children, poor people, the handicapped, puppy dogs, love and hugs, etc. 

So when the President demands a budget that raises spending, the question is--as with the "Affordable" Care Act and the aforementioned stimulus--will this be in the best interest of the nation? 

Certainly, our economy is improving.  Yet a reasonable question is whether the economy in this nation (particularly in this state) is improving because of, or despite, the governmental policies of President Obama, Governor Brown or anyone else whose policies makes it tough for businesses to hire full-time, or for middle class families to keep their hard-earned money. 

Particularly in the state of California, where the term "middle class" or "upper middle class" refers to income that makes a person wealthy in other states of the union.  

Hence even the consideration of the taxation of 529 college savings accounts is more than a little frightening...because where is THAT idea going?  

The improving state and federal economy is probably much more a testament to the hardiness and endurance of the American people than to any successful government policy...and while there are some who'd rather stick rusty nails into their eyes than admit it, it's also possible that Congressional termination of the never-ending unemployment benefits also played a role in the sharp rise in employment. 

Yet too many Americans are still fretful about their lousy jobs without benefits, and are working 2-3 jobs to make ends meet, and/or wondering if they can afford to send their kids to college.  

And they're wondering who the heck is going to pay for a debt that's still too darned big, and if their children have much a future to look forward to. 

So the economy is better than it was in 2008...nice, but that's not saying too much.  

Just don't expect too many Americans who've become disenchanted with this current President--just like they became disenchanted with our last President--as even savers get considered for new taxes at a time when financial, physical and emotional survival appears to be all that most of us can do right now. 

Very tacky and tactless, indeed, Mr. President.

 (Ken Alpern is a Westside Village Zone Director and Board member of the Mar Vista Community Council (MVCC), previously co-chaired its Planning and Outreach Committees, and currently is Co-Chair of its MVCC Transportation/Infrastructure Committee. He is co-chair of the CD11Transportation Advisory Committee and chairs the nonprofit Transit Coalition, and can be reached at [email protected]  He also does regular commentary on the MarkIsler Radio Show on AM 870, and co-chairs the grassroots Friends of the Green Line at www.fogl.us. The views expressed in this article are solely those of Mr. Alpern.)

-cw

 

 

CityWatch

Vol 13 Issue 10

Pub: Feb 3, 2015