Tuesday, May 23, 2006

At least he didn't say "read my lips." If you're worried that your teen might be on the verge of becoming a Republican, you can tell them this story, of one of the ways the Bush Administration is trying to help pay for tax cuts to the richest Americans and corporations. From David Cay Johnston, author of "Perfectly Legal", in Sunday's NYTimes:
The $69 billion tax cut bill that President Bush signed this week tripled tax rates for teenagers with college savings funds, despite Mr. Bush's 1999 pledge to veto any tax increase.

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.
We wouldn't want to accidentally offer any encouragement for kids to save for college now would we?

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