A great deal of the population of the United States belongs to the middle class; where people get up in the morning to go to work and send off their children to school. More often than not, they are the ones who get loans for purchasing a car, a house, or even for personal use. While some of them get bad credit scores for being unable to pay off their borrowed money, others get help from credit repair companies to obtain a new one. This is primarily the population Obama wants to help out.
President Obama tells the people that he’s all about the “middle class”. And for that, he coined a new term called Middle Class Economics. Along with that, he also released a number of plants that will help these families get ahead in terms of finance. Thus, as a consequence, he would tax the rich.
However, not everyone in the middle class group will benefit from these plans. It greatly favors those who are married and have children.
Robertson William, a fellow at the Tax Policy Center, said, “Many people in the middle class will get no benefit from the president’s proposal. Among the middle class, it’s targeted at people with kids and second earners. Virtually no single middle class people without kids will get anything.”
But, the White House and other liberal policy groups argue that the center’s methodologies mistakenly label several affluent Americans as belonging to middle class population.
It’s difficult to measure how the tax plan would really benefit the middle class because the tax averages can be deceiving. People who are on both sides of the spectrum pounced on the recent analysis of the center which showed middle class people, earning between $49,000 and $84,000, would actually pay $7 more in tax, on average.
If you look closely at the analysis, however, it reveals that the center included an average $19 tax bill to everyone included in the middle class bracket to account for the tax imposed by banks, which is actually endured by all Americans.
A different angle looks at the individual income tax provisions that include a credit for employed married couples and expanding their tax credit for child care.
Hence, that is the reason why those with children came out as winners on the president’s proposal. About 51% of the middle class taxpayers that have kids would certainly receive a tax deduction. On average, they will be awarded with $329 tax deduction.