Taxes, Super Bowl, 529 Savings Programs… and More
It was one of those shows when I covered a lot of ground in a short amount of time. It started with my boredom over the Super Bowl week being dominated by footballs with slightly lower pressure. From there it was a quick discussion about the Croatian Super Bowl connection (my most popular blog post ever) and then a quick look at the California DMV and its quick turnaround concerning commercial plate requirements for ride sharing vehicles.
From there, we spent time discussing, 529 College Savings Plans and the President’s proposal to phase them out. By the way, he must have been listening… two days later he withdrew the proposal. From there it was off to a big picture discussion about tax revenue and spending habits in Washington. Look out folks, those pesky folks in Washington DC may be after your ROTH IRA accounts too!
The bottom line is simply a mathematical problem. The easy tax revenues for government have already been accessed. Now it appears that government is going to have to learn to budget better or more wisely in the future. It will become harder and harder to add new programs or significant spending without raising taxes on the middle class. It will be hard to go after more of the middle classes’ income, so the likely targets are their savings. And the ROTH accounts have a bulls-eye on them right now.
Finally, a short segment on my daughter Rachel and her experience at the giant home show. Grandma gave her $20 to spend and she learned several lessons on her own as she dealt with the concept of limited money and so many choices to spend it on.
As a parent, it was great to watch her grow as she came to grips with the idea of spending. Rachel learned how to budget for the day and limit her spending. I only wish it was that easy for Washington DC to curb its spending habits. Or maybe they can just learn to spend it more wisely!
I hope you enjoy the program.