President Obama announced almost two weeks ago that he intended to pay for two “free” years of junior college for everyone. No, not out of his own pocket — he’ll tax the college savings plans of those people who are paying for college themselves.

While liberals were ecstatic, conservatives mocked the proposal and wondered how he would go about financing it.

Wonder no more. The president will be announcing a new tax package at his State of the Union address Tuesday, including $320 billion in tax hikes. Buried within his proposal is this item picked up by Americans for Tax Reform:

Tax Increase on Families Saving for College

Under current law, 529 plans work like Roth IRAs: you put money in, and the money grows tax-free for college. Distributions are tax-free provided they are to pay for college.

Under the Obama plan, earnings growth in a 529 plan would no longer be tax-free. Instead, earnings would face taxation upon withdrawal, even if the withdrawal is to pay for college. This was the law prior to 2001.

That’s right. It’s another wealth redistribution scheme. The people who have been scrimping, saving and planning ahead for college expenses will foot the bill for those who didn’t.

This wasn’t lost by the folks on Twitter, either, starting out with this one from Sean Davis:

Not joking: Obama wants to pay for his community college gimmick by double-taxing — wait for it — college savings plans.

— Sean Davis (@seanmdav) January 18, 2015

Davis stirred up a hornet’s nest of replies, including these:

@seanmdav @bethanyshondark Yikes! I’m pro an affordable college education (current costs are obscene), but that plan is ridiculous.

— Farrah Udell (@farrahudell) January 18, 2015

@seanmdav @Rkirnum Again, punish the responsible by transferring their wealth to the irresponsible. Obama is consistent.

— Jeff Henderson (@jkhgovols) January 18, 2015

Davis followed up with another tweet, which kept the conversation going:

“How should we pay for my ‘free’ community college plan?” “Let’s steal from people who saved money for college!” http://t.co/7qmJqMqwd5

— Sean Davis (@seanmdav) January 18, 2015

@nolafoodguy @seanmdav @JBrockm They will work at McDonald’s for $15.00 silly.

— Alison (@FetchingFeline) January 18, 2015

@seanmdav Progressives hate and destroy the #MiddleClass. The evidence of six years makes it clear #stoprush #libcrib pic.twitter.com/xbpOQ9QwtX

— millie neal (@themillieneal) January 19, 2015

Davis concluded his commentary with this observation:

Just like his so-called health care plan: let’s make health care more affordable by raising taxes and making it more expensive.

— Sean Davis (@seanmdav) January 18, 2015

In addition to taxing college savings plans, Obama will be calling for a hike in capital gains taxes, a stealth increase in the death tax, a bank tax and an increase in retirement plan taxes. Each of his proposals will affect the middle class either directly, or somewhere down the road.

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Michael Dorstewitz

Mike has been with BizPac Review almost from the beginning. Follow him on Twitter at @MikeBPR.

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