OBAMA 529 SURRENDER: Exposes Income Redistribution Scheme

In America, a visionary leftist who seeks to construct a shining path to a socialist utopia faces a daunting reality; specifically, if people figure out what he’s trying to do for (to) them, they aren’t having any of it. Of course, that’s why the Blattodean* Left must resort to deceit, dissembling, and double-talk to try to put one over on the American public time and again.

One week after his one-hour plus outreach to the low-information crowd, that reality smacked Barack Obama right up the side of his head. He was forced to withdraw a plan that he floated during his State of the Union speech, one that put a target on the backs of the “middle class” that he claims to cherish, one that helped them save money for their children’s college educations in what are commonly known as 529 plans. 

As we explained on last Sunday’s edition of The Teri O’Brien Show, these plans, named after the section of the Internal Revenue Code that provides for them, allow parents to save after-tax income for college tax-free. In addition, under current law, there is no tax due when the money is withdrawn to pay for tuition, books, and other college expenses. From CNN.com:

The White House is giving up on a costly fight with Congress over the Obama administration’s increasingly unpopular proposal to effectively end 529 college savings plans.

A White House official confirmed the move on Tuesday as fierce opposition to the provision was building in Congress, even among fellow Democrats.

“Given it has become such a distraction, we’re not going to ask Congress to pass the 529 provision so that they can instead focus on delivering a larger package of education tax relief,” the official said.

A “distraction?” No, that’s not the reason for Obama’s surrender on this one. Usually, when I refer to the Democrats as the “white flag party”, I am referencing their tendency to refuse to confront the reality that we are at war with head-chopping Islamic lunatics. This time they surrendered to political reality, and did so fast for good reason. This proposal shined a light on a truth that is fatal to all Leftist schemes. That’s why Nancy Pelosi wanted to kill this proposal STAT. It rips the mask off these phonies and exposes them for the greedy control freaks that they are.

For all their claims to want to “fight for the middle class” and “tax the rich”, the fact is that they could never quench their insatiable thirst for other people’s money by just going after the very rich. Like Willie Sutton, these thieves have to go where the money is. In the case of Sutton, that was banks. For the Left, it is the middle class.

The more people who learned about Obama’s plan, the more they would realize what a contemptible, dishonest con artist he is. And what a hypocrite as well, since he and his repellent wife set up a 529 plan for their daughters and contributed $240,000 to it in 2007. Their plan would be grandfathered in under current law, and therefore, its earnings would not be taxed. As usual, liberals don’t have any intention of living under the rules they want to force on the rest of us.

The bigger and more significant revelation resulting from this debacle, one that is devastating for the Left, is that the welfare state is unsustainable without going after the middle class. The scheme to tax the earnings in these 529 plans is a microcosm for all income redistribution schemes, which must target the middle class. That’s the dirty little secret, one that they can’t afford for you to find out. 

*Blattodean refers to an order containing the species “cockroach”

Politics, Pop Culture, the Hottest Issues of the Day, the flagship show of the Informed America Radio network,  The Teri O’Brien Show, featuring America’s Original Conservative Warrior Princess, Live and in vivid red, white and blue, Sundays 5-7 pm Eastern time (4-6 pm Central) at teriobrien.com and http://www.spreaker.com/show/the-teri-obrien-show, and anytime on demand on iHeart Radio, Stitcher Radio, and iTunes.

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Teri O'Brien

About the author, Teri O'Brien: Teri O'Brien is America's Original Conservative Warrior Princess, and host of The Teri O'Brien Show, which debuted on Chicago's radio home for Rush Limbaugh, and now airs in the cutting edge world of online media, She is a yoga-practicing, 2nd Amendment-loving, bench pressing Mac girl geek, attorney, provocateur, author, and dangerous thinker. Teri is also the author of the new ebook, The ABC's of Barack Obama: Understanding God's Gift to America. Learn more at teriobrien.com. View all articles by Teri O'Brien

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