President Obama continued his war on private and nonprofit colleges this week with his State of the Union proposal to end the tax free status of withdrawals from 529 college funds. As a result, were his bill to pass, taxpayers would face full taxation when they take their money out to pay for their children’s’ college.
The president’s recommendation comes a few years after he and Michelle had invested $240,000 in their daughters’ college fund with the expectation of tax free treatment when they pull it out. Obama would continue his daughters’ tax free treatment but end if for all future funds.
The money from this tax break will be used, in part, to fund greater tax credits for the first two years of college.
So Obama’s message is to deny Ivy League educations to people other than he (who attended Harvard Law and Columbia on scholarships), Michelle (who went to Princeton) and his daughters. Raise the drawbridge! No more tax breaks for the future.
This proposal is in line with his effort to consolidate all higher education under the control of state and federal government. He wants to eliminate for profit colleges (by subjecting their students to special scrutiny over their student loans) and nonprofit colleges by repealing tax breaks like these which help parents afford tuition.
That way people will have to depend on federal grants (the proposed tax credit or Pell Grants) and federal student loans to go to college. Advance one for the welfare state!
Implicit in this calculation is the question: Who needs to go to elite private or nonprofit colleges? Why can’t everybody settle for lower cost public universities? The blatant hypocrisy of an affirmative action Ivy League president and first lady using scholarships they would now make more difficult for anyone other than their own children to get is breathtaking!
Even for Obama.
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