Despite Pledge, Taxes Increase for Teenagers

By DAVID CAY JOHNSTON
Published: May 21, 2006

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.http://www.nytimes.com/2006/05/21/washington/21tax.html?_r=1&oref=login

could this make its way off page 22 of the NYT too Faux Newz I doubt it

:kick:

May 20, 2006, 9:02PM
Recently enacted tax cut bill takes more of teens' savings
Tripled tax rates on college funds could produce billions in 10 years

By DAVID CAY JOHNSTON
New York Times

The $69 billion tax cut bill that President Bush signed last week tripled tax rates for teenagers with college savings funds, despite 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.

The increases, which are retroactive to the first day of the year, are expected to generate nearly $2.2 billion over 10 years, according to the Congressional Joint Committee on Taxation, which issues the official estimates.
(snip/...)

http://www.chron.com/disp/story.mpl/nation/3877357.html

think you've learned something, but when you try to say what it is (besides the takeaway deduction), you're stumped.

$2.2 billion in increased revenues over 10 years, assuming something or other holds true for 10 years. No word on how much is expected to be generated in the first year (for which assumptions might, just might possibly be valid). No word on how many people are affected. No word on exactly what's covered: Did it strip away tax protections for assorted kinds of sheltered education-fund accounts? For all I know 99% of the 'revenue' comes from taxing very large non-sheltered accounts held by the children of the wealthiest 1000, money put in their name specifically to avoid taxes by their parents or that result from their parents' premature death.

Odds are the reporter didn't know enough to report this information, and didn't care. Reach the desired takeaway conclusion based upon projections which are based upon unknown assumptions, and file the story.

Odds are the reporter is actually for increased taxes for the wealthy.

what's next? The gold from our teeth?

:kick:

May 22, 2006 — President Bush signed into law last week a bill that creates nearly $70 billion worth of tax cuts for American taxpayers, but it could affect the future education of many of America's teens.

snip

In his speech just before he signed the bill, President Bush expounded on the "good day for American workers and families" and claimed the measure "reduced taxes for every American who pays income tax."

http://abcnews.go.com/Nightline/Business/story?id=1991202&page=1

If they have the brains--and the guts to defy their repuke parents--they'll help vote those pukes out of office!

Repukes like to tax kids because minors can't vote and therefore don't have a voice.

It's so much fun to pick on people who can't fight back :sarcasm:

a little more on their stocks.

George Bush spent our grandchildren's inheritance