Free Markets, Free People

So typical

Who is the “servant” here?

With an increase in electric and hybrid vehicles along with better fuel-efficient vehicles, changing Bay Area drivers habit are posing a serious problem for state coffers.

As motorists use less and less gas, gas tax revenues to pay for state highways, roads and bridges shrink. Meanwhile, as gas prices fall, so does the sales tax generated by fuel sales. In California, among the taxes collected on fuel is a 2.25% sales tax on gasoline and a 9.67 percent tax on diesel.

Some state lawmakers feel a mileage tax is the best solution.

Solution for what?

The serious problems posed for “state coffers”.

Hey here’s an idea … when state revenue goes down, how about cutting spending?

Note as well that no one is saying a thing about doing away with the fuel tax.

Nope … it’s all about the “state” and its needs.  And all that needs to be done to deprive Californians of even more of their hard earned dollars is a vote of the legislature and a signature of the governor.  Bingo, instant revenue (and likely a large new bureaucracy to “manage” it).

And the federal government is no different.

When a government is desperate for cash, it goes after the middle class, because that’s where the money is….

Though millions of Americans have been putting money into “tax free” 529 plans to save for their children’s increasingly expensive college educations, President Obama would change the law so that withdrawals from the plans to fund college would be taxed as ordinary income. So while you used to be able to get a nice tax benefit by saving for college, now you’ll be shelling out to Uncle Sam every time you withdraw to pay for Junior’s dorm fees.

This doesn’t hurt the very rich — who just pay for college out of pocket — or the poor, who get financial aid, but it’s pretty rough on the middle– and upper–middle class. In a double-whammy, those withdrawals will show up as income on parents’ income tax forms, which are used to calculate financial aid, making them look richer, and hence reducing grants.

Likewise, Obama proposes to tax the appreciation on inherited homes.

Because, you know, save the middle class … or something.

Pay up, suckers.

~McQ

Tweet about this on TwitterShare on FacebookShare on Google+Share on TumblrShare on StumbleUponShare on RedditPin on PinterestEmail this to someone

21 Responses to So typical

  • Dude! You can’t leave all that money in PRIVATE hands…!!! What the HELL are you thinking?

    PLUS, taxing people’s driving and their homes will serve the Obamic/Collectivist goal of forcing you and I into planned urban areas and out of the places we WANT to live and the means to get to them.

    Just think how dreamy it would be to board your bus or train under the watchful eyes of the TSA Komandos!

  • A slight correction, it is the earnings that are taxed when withdrawn, not the original principal. This however begs the question will interest earnings be taxed differently from dividends and capital gains? Or does it become the same as an IRA where it is all the same type of income ? I did read that The Dear Golfer took advantage of the five year option where you can front load five years of 529 deposits in one year without running in to gift tax considerations.

  • HAHHA jokes on you, i quit working why work when you can mooch? NEET is the way to go.

  • The college thing is easy to understand.
    1) destroy educational savings plans for the Middle Class
    2) “free” community college
    Obviously, the Middle Class is problematic in regard to non-“community college” colleges .. i.e. the Middle Class is using too much of the bandwidth of elite private colleges.
    The only remaining question .. “the Middle Class is problematic” for whom ?

    Unanswered questions:
    1) How is Malia Obama doing with her college entry quest ? (Mom went to Princeton and Harvard)
    2) Are Natasha Obama’s grades better or worse that Malia ?

  • I honestly think they’re edging closer to the line here. They’re gonna grab for something they shouldn’t (401K maybe? Unused equity in family homes?) and someone(s) gonna find themselves twitching as they dangle…

  • Hey, what happened to that Obama promise that taxes for anyone making less than $250K “would not go up one dime”?

    • The same thing as that promise he made in 2009 that he was going to cut spending and balance the budget.

      You know, the one Professor Polywobble made a big deal about, when we all knew it was ridiculous on its face.

    • One of Barack Obama’s campaign promises was to go line by line through the budget to see where money can be saved.

      Yeah. For sure.

    • Silly. Raising your taxes a dime is no good! Hardly worth the effort.

      Now, he never said he wouldn’t raise taxes by thousands of dimes. See, now you’re talkin’.

      You just have to learn to listen more truthfully so you understand when liars are talking. It’s YOUR fault, doncha know.

  • Taxing the gas or the roads wouldn’t bother me if the money actually went into the roads. In my lifetime of exposure to Michigan politics every tax has been for either the roads or education and we have the worst roads and schools, I think we’re in the bottom half. The roads should be silky smooth by now. But no, our ‘republican’ governor wants to increase taxes to ‘fix the roads’.

    • In Pennsylvania, we now have the 2nd highest gas tax (after a $0.10 rise on Jan 1) after they threaten to make some major highways “toll roads”.

    • Tennessee does a pretty good job of allocating fuel taxes to roads. Less than 10% of our gas tax goes to the state’s general fund. Over half goes to the Tennessee Department of Transportation, and our state roads stay in pretty decent shape. About a third goes to cities and counties, and while they are not required to use that money for roads, most of them do.

  • Never thought the bourgeoisie (including the little bourgeoisie) figured high on a Marxist’s radar. Nobody should be shocked.

  • I wouldn’t have much trouble with a mileage tax IF it replaced the fuel tax. The mileage tax is more in line with Libertarian principles: you are taxed only on what you actually use, and driving on a road constitutes use. A fuel tax is an indirect tax on miles traveled: the more miles you drive, the more fuel you will use. But two different cars will not go the same distance on a mile of fuel, so the fuel tax isn’t equitable. It has been MUCH easier to levy and collect than a mileage tax would have been. But with current technology, levying and collecting a mileage tax is feasible.

    If all roads were privatized people would pay tolls for their use, and the tolls would be based on distance traveled (and, probably, the weight of the vehicle). So, a mileage tax is more sensible to a libertarian than a fuel tax would be.

    But all the presupposes the fuel tax would be eliminated. I know that it won’t.

  • Kirk: Still, “old friend!” You’ve managed to kill everyone else, but like a poor marksman, you keep missing the target!

    Obama makes all kinds of noise about taxing the “rich” but he always seems to miss the target during the implementation.
    Afterall, does anybody expect campaign donors to give money and then have their taxes raised ?

    • Hey, he’ll tax George Soro’s 529 just like yours!

      Anyone recall how US Secretary of State John Kerry tried to avoid his $500,000 luxury yacht tax in Massachoosnots by docking it in Rhode Island?

      Yeah, the media neither.

  • Hey, he’ll tax George Soro’s 529 just like yours!

    LOL! FWIW, I’ve already stopped contributing to the 529 plan — I can see where that is going. Instead it’s all going into precious metals where I might accidentally lose it all in an unfortunate boating accident once I take delivery of the safe.

    • Don’t you just hate when Karma finds strange ways to deny you of your property which the government was keeping tabs on for your benefit?

      • Future econ undergrads will be writing term papers about the mysterious correlation between negative interest rates and insurable losses, treasures lost at sea, Fortean events, etc.

  • Looks like Obama is backing away from his plan to tax 529s.

    Third rail!

    • Well. certainly tin cans with pebbles on the wire for those who understand that having come close to taxing it, they’ll be back again later when the opportunity seems more of a sure thing.