Government taxing kids savings accounts

Thread starter #1

mike bell

Senior Member
This ConservativePetitions.com Alert is a special message from RightMarch.com:

ALERT: Thanks to a Congress that just loves to overspend, teenagers saving for college are now facing tax increases!

Last year, the "Tax Increase Prevention and Reconciliation Act" became law. While including many important tax cuts, this bill also included a tax increase on teenagers. This tax was increased even more this year in the "U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act," which became law on May 25.

Previous to this legislation, children under the age of 14, who could be claimed as a dependent on their parents' tax return, were subject to a tiered tax structure for their unearned income. This unearned income could be interest earned on bank accounts or bonds in a Uniform Gift to Minor Account, or dividends paid on stock. The first $800 of income was tax free, the second $800 of income was subject to a lower child's tax rate, and anything above $1,600 was subject to the parents' tax rate.

The initial motivation for this structure was to discourage parents from putting assets in their children's names to avoid higher tax rates. However, once a child turned 14 all income was taxed according to the child's tax bracket.

Not anymore!

Last year's legislation increased the age limit to 17, and this year's legislation raises that age one more year to 18. So, the unearned income of children aged 18 and younger will now be subject to their parents' tax rate. This will affect families who have invested in savings accounts for their children to use towards future college expenses.

Additional government spending does require more revenue, but given some of the huge federal programs that waste money each year, we should NOT be raising taxes on our children -- we should be cutting waste OUT of existing government programs.

Thankfully, Rep. Marilyn Musgrave (R-CO) has introduced legislation to repeal the provisions included in the 2005 tax reconciliation and 2007 supplemental appropriations bills, to repeal these tax increases on children and parents. Now it's up to us to demand Congress pass this bill!

TAKE ACTION: It simply makes no sense to tax 14-17-year-olds at their parents' tax rates. Most kids are just trying to earn money for college or a car. But big spenders in Washington don't seem to care.

It's time to make them care, by demanding they support this common-sense legislation. Click below NOW to send a FREE message to your Congressman, asking him or her to support H.R. 3262, to amend the Internal Revenue Code of 1986 to restore age 14 as the age at which unearned income of minor children ceases to be taxed as if parent's income:

http://capwiz.com/sicminc/issues/alert/?alertid=10190846&type=CO

NOTE: Be sure to send this Alert to EVERYONE you know who wants to help REPEAL tax increases on teenagers and parents. Thank you!
 
Them Congress critters just love them some Kiddie Tax. It was such a good idea they are going to increase it.
 

jj4301

Senior Member
The Democrat's theme, "...If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it."
-Ronald Reagan
 
6

60Grit

Guest
Yet the liberal professors will teach them all that it was Bush's fault, not the bloodsucking Dems that want to tax us down to our very last breath.
 

dixie

Senior Member
I wonder if we could find a way to get them to tax abortions?
 
6

60Grit

Guest
I wonder if we could find a way to get them to tax abortions?
That'd be a kicker wouldn't it??

I have a better one, it would both deter anyone from wanting to be a politician and raise capital at the same time.

Tax all income, property and retirement pensions of any Government Politician, that would be Local, State and Federal offices earned by a vote, at triple the normal rate.

How about them apples....:banana:
 
The Democrats have no problem

taxing millionaire teenagers and their rich parents.

If they were in poverty, they'd never have to pay any tax. Democrats trust nobody.
 

drhunter1

Senior Member
You know it's bad when they can tax the dead! Crooks! Thieves! Democrats!
 
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