National Review’s Ashley Pratte writes, “The million-dollar phrase used by President Obama in his State of the Union address last week was ‘middle-class economics.’ What he didn’t explain is that his middle-class economics doesn’t actually help the middle class. It hurts them.”
The latest war on the middle class comes with the taxing of 529 college savings plans — which currently grow tax-free. They are very popular among middle-class families who are trying to responsibly save for their children’s college tuition…
More than 7 million families have saved money in 529 savings plans, believing that the future earnings on those plans would not be taxed and that they would receive tax cuts in their respective states. Obama’s proposal would directly hurt these families by taxing their savings as income, when they are already sacrificing to save.
The president himself has two daughters; he and the first lady have been putting away savings in 529 plans. It is important to note that they currently have $240,000 in their plans after front-loading five years’ worth of contributions back in 2007. The average balance in these 529 savings plans is $21,000 — a far cry from the president’s. The average family will struggle to make meaningful, useful future contributions to their accounts if the earnings and withdrawals are going to be taxed.
I guess that’s the definition of Obama’s middle-class economics…
Pratte adds, “Obama would make it near impossible for average Americans to save for their futures, but maybe that is his plan.”
Hurting the middle class has always been Obama and the left’s plan–promising things that sound wonderful but yet always end up hurting the middle class, or what Rush Limbaugh used to call “the people who make the country work.”
And just in case you think “Middle Class Economics” is somehow unique to President Obama, here’s what Hillary thinks.
Also remember, as Pratte noted, Obama’s new scheme to tax 529 college savings plans won’t affect his family at all: