(CNSNews.com) – President Obama announced a plan Monday to help the middle class that would double the child care tax credit for families earning under $85,000, among other things.
The administration plans to double the child care tax credit by increasing a family’s tax credit rate from 20 percent to 35 percent of qualifying expenses. Every family that makes under $115,000 would see a tax credit increase as well.
The president’s “Middle Class Task Force” also calls for capping student loan payments at 10 percent of income above a person’s “a basic living allowance,” as well as “creating a system of automatic workplace IRAs” which requires all employers to allow employees to enroll in direct-deposit IRAs.
"Too many Americans have known their own painful recessions long before any economists declared that there was a recession," Obama told the task force.
“We also need to reverse the overall erosion in middle-class security, so that when this economy does come back, working Americans are free to pursue their dreams again," the president said.
The tax force proposes expanding tax credits to match retirement savings and put into place “new safeguards to protect retirement savings to make it easier for families plan for retirement,” and expanding “support for families balancing work with caring for elderly relatives, helping them manage their multiple responsibilities and allowing seniors to live in the community for as long as possible.”
The task force’s final report and full recommendations will be released in February.
Obama said job creation and reducing unemployment is the “single-most important thing we can do to rebuild the middle class,” and he vowed not to “rest until we're doing just that.”
However, House Republican Leader John Boehner (R-Ohio) said that Obama’s middle class proposals would do nothing to create jobs.
“Americans are asking ‘where are the jobs?’ but none of the proposals outlined by the White House today would, in fact, create jobs. And they do nothing to protect Americans from the President’s job-killing agenda, including the government takeover of health care, the ‘cap and trade’ national energy tax, the reckless spending and new debt, and more taxes and regulations that make it harder for middle-class families and small businesses to save, invest, and hire,” Boehner said in a statement.
“The American people don’t need more photo-ops; they need new policies that create jobs. Republicans have been offering common-sense solutions to help create jobs for struggling families and small business. It’s past time for the White House to scrap its job-killing agenda and work in a bipartisan way to create jobs for the American people,” Boehner said.