Despite Pledge, Taxes Increase for Teenagers

[Bottomfeeder 244]

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

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.

Mr. Norquist, in an interview Thursday, said he was unaware that the bill raised taxes and tax rates on teenagers with college savings funds because "no one here noticed" the provisions. But Mr. Norquist called the bill raising taxes on teenagers with investment income "a technical violation of the pledge" and noted that his group opposes all retroactive tax increases. He pledged to immediately begin a campaign to have the tax increases rescinded. 

[BamaGrad03 0]

Heh...i hope the democrats are happy. They want investments to be taxed to hell and back...and now they are getting some of that revenue from whom they say are the "ultra rich"...17 year olds who got some stock from their grandmother.

[Tigermike 3,039]

Heh...i hope the democrats are happy. They want investments to be taxed to hell and back...and now they are getting some of that revenue from whom they say are the "ultra rich"...17 year olds who got some stock from their grandmother.

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I hate to point out the obvious, but the dims could not have passed this by themselves. This was truly a bipartisan screw job.