[CAF Note: Obama Administration is dropping the proposal to tax 529 plans.
I told you the week it was announced that it was DOA. You did not even need the Congress to DOA it. The idea of taxing middle class people trying to save for higher education in the hopes that this will help the middle class is something that would only happen in a country where only political dynasties run for President. Here is how bad things are – first The Economist editorial page points out that the American police state is destroying the US economy, then the Administration cancels the state and local share of asset forfeiture. This week, The Economist points out that America’s aristocracy privileged access to education may also destroy the economy, then the Administration cancels their insane plan to tax college savings. I can only wonder: has the City of London decided to save America and announce its intended policy changes in the editorial page of The Economist? This week’s well deserved spanking of the American elite should not be missed.]
By the Editors, The Economist
WHEN the candidates for the Republican presidential nomination line up on stage for their first debate in August, there may be three contenders whose fathers also ran for president. Whoever wins may face the wife of a former president next year. It is odd that a country founded on the principle of hostility to inherited status should be so tolerant of dynasties. Because America never had kings or lords, it sometimes seems less inclined to worry about signs that its elite is calcifying.
…Loosening the link between birth and success would make America richer—far too much talent is currently wasted. It might also make the nation more cohesive. If Americans suspect that the game is rigged, they may be tempted to vote for demagogues of the right or left—especially if the grown-up alternative is another Clinton or yet another Bush.