This line in the article strikes me that Obama like most presidents is moving to the center on most of his proposed domestic economic policy by extending the Bush cuts and adding his own.
"They're going to extend the Bush tax cuts and add their own tax cuts," says Bob McIntyre of Citizens for Tax Justice.
Obama's campaign promise to cut taxes for the middle, working and lower class while raising the tax for the wealthy is progressing as he said in his campaign. More money in the pocket of the average person will help to relieve some of the economic downturn as these people will most likely spend it on everyday living expenses. As to the wealthy they will still buy what they want and need as they have the money available to spend.
Obama's budget offers middle and working class 'good news'
By Laura Petrecca and Christine Dugas, USA TODAY
President Obama's sweeping budget outline, released Thursday, would raise taxes on the wealthy as it offers a range of cash-saving initiatives for the middle and lower classes. It touches broadly on the typical household budget — from retirement savings and health care costs to college tuition.
The plan "means a lot of good news for both middle-class families who have been struggling to keep their heads above water and now are in danger of sinking, as well as working-class and lower-class Americans whose heads haven't been above water for some time," says William Galston senior fellow at the Brookings Institution, a research and public policy institute. The plan's goals:
OBAMA BUDGET: Unprecedented size, scope
ENERGY IMPACT: Plan targets oil, gas tax breaks
•Provide tax relief: Millions of taxpayers would receive a permanent break of up to $400 for individuals and up to $800 for couples. "For an American that makes about $200 per paycheck, assuming a few other variables, that's an extra $13," says Mark Steber, vice president of tax resources for Jackson Hewitt. "It's additional money in their pocket."
•Expand earned income tax credit: This tax credit is among the "bigger tax credits both in size and scope," says Steber. In the past, there has been a limit based on "how much money you make and how many children you have," he says. Obama's plan calls for making the credit permanent, as well as expanding the financial benefits for those who qualify.
•Make college more affordable: The plan not only has provisions for reduced interest rates for student loans, it also calls for a permanent tax credit — up to $2,500 annually, based on education expenditures — for those who qualify. This could help families with their college cost budgeting, says Galston.
•Bulk enrollment in retirement plans: The plan calls for employer assistance so they can "set up the systems they need to directly deposit worker contributions to IRA accounts if they don't offer workplace retirement plans," says Galston. Employers that offer 401(k) retirement plans would also have to provide mandatory automatic enrollment. "This would require them to do it, and then employees would be able to opt out," says Dallas Salisbury, CEO of the Employee Benefit Research Institute. This mandatory provision could be controversial, because it will increase administrative and employer costs during a tough economy, says Salisbury.
•Improve the savers credit. The plan would increase the tax credit to families earning up to $65,000 annually, from $50,000. Savers would be entitled to a refundable 50% credit on the first $1,000 in contributions.
•Make permanent the American Opportunity Tax Credit and make it available to more families. This provides a $1,000 child tax credit to low-income families.
The thrust of the tax proposals is to make the tax law more progressive, says Daniel Goldberg, professor at the University of Maryland School of Law.
But the far-reaching plans worry some.
"They're going to extend the Bush tax cuts and add their own tax cuts," says Bob McIntyre of Citizens for Tax Justice. "They don't explain how they're going to pay for it."
http://www.usatoday.com/money/perfi/taxes/2009-02-26-budget-taxes-obama_N.htm
"They're going to extend the Bush tax cuts and add their own tax cuts," says Bob McIntyre of Citizens for Tax Justice.
Obama's campaign promise to cut taxes for the middle, working and lower class while raising the tax for the wealthy is progressing as he said in his campaign. More money in the pocket of the average person will help to relieve some of the economic downturn as these people will most likely spend it on everyday living expenses. As to the wealthy they will still buy what they want and need as they have the money available to spend.
Obama's budget offers middle and working class 'good news'
By Laura Petrecca and Christine Dugas, USA TODAY
President Obama's sweeping budget outline, released Thursday, would raise taxes on the wealthy as it offers a range of cash-saving initiatives for the middle and lower classes. It touches broadly on the typical household budget — from retirement savings and health care costs to college tuition.
The plan "means a lot of good news for both middle-class families who have been struggling to keep their heads above water and now are in danger of sinking, as well as working-class and lower-class Americans whose heads haven't been above water for some time," says William Galston senior fellow at the Brookings Institution, a research and public policy institute. The plan's goals:
OBAMA BUDGET: Unprecedented size, scope
ENERGY IMPACT: Plan targets oil, gas tax breaks
•Provide tax relief: Millions of taxpayers would receive a permanent break of up to $400 for individuals and up to $800 for couples. "For an American that makes about $200 per paycheck, assuming a few other variables, that's an extra $13," says Mark Steber, vice president of tax resources for Jackson Hewitt. "It's additional money in their pocket."
•Expand earned income tax credit: This tax credit is among the "bigger tax credits both in size and scope," says Steber. In the past, there has been a limit based on "how much money you make and how many children you have," he says. Obama's plan calls for making the credit permanent, as well as expanding the financial benefits for those who qualify.
•Make college more affordable: The plan not only has provisions for reduced interest rates for student loans, it also calls for a permanent tax credit — up to $2,500 annually, based on education expenditures — for those who qualify. This could help families with their college cost budgeting, says Galston.
•Bulk enrollment in retirement plans: The plan calls for employer assistance so they can "set up the systems they need to directly deposit worker contributions to IRA accounts if they don't offer workplace retirement plans," says Galston. Employers that offer 401(k) retirement plans would also have to provide mandatory automatic enrollment. "This would require them to do it, and then employees would be able to opt out," says Dallas Salisbury, CEO of the Employee Benefit Research Institute. This mandatory provision could be controversial, because it will increase administrative and employer costs during a tough economy, says Salisbury.
•Improve the savers credit. The plan would increase the tax credit to families earning up to $65,000 annually, from $50,000. Savers would be entitled to a refundable 50% credit on the first $1,000 in contributions.
•Make permanent the American Opportunity Tax Credit and make it available to more families. This provides a $1,000 child tax credit to low-income families.
The thrust of the tax proposals is to make the tax law more progressive, says Daniel Goldberg, professor at the University of Maryland School of Law.
But the far-reaching plans worry some.
"They're going to extend the Bush tax cuts and add their own tax cuts," says Bob McIntyre of Citizens for Tax Justice. "They don't explain how they're going to pay for it."
http://www.usatoday.com/money/perfi/taxes/2009-02-26-budget-taxes-obama_N.htm
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