Taxes Triple for Teenagers May 22, 2006
Tripling tax rates for teenagers with college savings funds is outrageous:
Under the new law, teenagers age 14 to 17 with investment income will now be taxed at the same rate as their parents, not at their own rates. Long-term capital gains and dividends that had been taxed at 5 percent will now be taxed at 15 percent. Interest that had been taxed at 10 percent will now be taxed at as much as 35 percent.
Because I believe savings for college is becoming more and more difficult because of increasing education costs and tuition, and higher interest rates for borrowing, I’d be willing to pay higher taxes either with a consumption tax, gas tax, or income tax. I think this country has enough obstacles for young Americans to go to college for a higher education. How are we to compete with other countries that are educating more PhDs, MDs, and MBAs than in the US? We don’t need taxes on teens to reduce money that would otherwise have gone to pay for tuition.
Add Taxes to the Teen Triple Threat:
- Tapped by Taxes
- Truancy (education, or lack thereof)
- Titled or enTitlement (from previous post on Sweet 16 parties or Gen Y salary expectations)
According to the NY Times article, Mr. Bush pledged in 1999 to veto any bill that raised taxes. I hope Mr. Bush rescinds his tax increase for teens so we can feel more secure about this country’s future.
Source:
Despite Pledge, Taxes Increase for Teenagers
By DAVID CAY JOHNSTON
Published: May 21, 2006