Obama’s Tax Deal Helps Middle- And Low-Income Families, Too
December 8, 2010
(ChattahBox U.S. News)—With all of the posturing going on in Washington about President Obama’s decision to extend Bush tax cuts that help the wealthy, Americans may not realize that the $800 billion deal will help the rest of the taxpayers as well, Money reports. In fact, the payroll tax holiday included in the package, which cuts two percentage points off of the 6.2 percent payroll tax, provides more benefit than Obama’s previous Making Work Pay tax credit.
Other benefits in the deal include a tuition tax credit of up to $2,500 for taxpayers with kids in college. Prior to the Recovery Act, that level was $1,800, Money notes. Plus, families who earn as little as $3,000 can qualify for a $1,000 child tax credit. Under the plan, a mother of two earning minimum age would claim a credit six times what it would have been without the tax cut deal.
Americans across all tax brackets will see their rates remain at the low rates established by George W. Bush in 2001, “though top earners would see the largest boost in after-tax income, by percentage,” Money notes.