Barack Obama’s tax plan provides a general tax relief to the working class while minimizing taxes for the entrepreneurship that generate industry in America. Barack Obama’s plan is to restore fairness to the tax code while returning fiscal responsibility to the government. Even though his optimistic investments in green energy and education have lost momentum, the tax plan will create lower-end jobs in America from the bottom up, and will return some confidence to middle class families who took a hit in the recession.
Obama’s tax cuts double breaks for working couples, eliminates capital gains for small business, and provides working class families the advantage of doing their own taxes in less than five minutes without an accountant. His most generous benefits goes to seniors and those looking for heath care breaks. The Obama administration offers better tax deals then President Reagan, and middle class families will notice the difference. It also claims that that McCain’s plan would have increased the taxes of middle class families as much as three times. Obama also claims that taxes will be cut overall, and families making a quarter million or more a year will not see their taxes increase, or will pay the same amount of taxes they did in the 1990’s.
The heart of Obama’s tax plan will be a general middle class tax relief. Small tax credits will come to the working poor with larger credits for families that have enrolled community college students. Very small tax interest credits will come to those with mortgage investment payments while striving to make homeownership more affordable for the poor. He is also eliminating taxes for senior citizens making less than fifty thousand dollars a year. Newly wedded families with children are also eligible for new benefits by reforming the Child and Dependent Care Tax Credit, making it refundable and allowing low-income families to receive up to fifty percent credit on the first six thousand dollars of child care expenses. This proposes to benefit seven and a half million mothers.
His efforts to administer a green administration are backed by a credit for anyone purchasing an electric or green motor vehicle. It also proposes a direct tax cut for small business is an attempt to create growth and encourage job creating in America. His optimistic intentions of rewarding firms that excel in innovation, together with cutting corporate tax rates for firms that create jobs offers a sense of fairness to the tax code that hasn’t been seen in democracy since Kennedy.
Barack Obama’s attempt at restoring fiscal responsibility to the administration is overlapped by the strength of President Reagan’s tax plan, but Obama’s White House will keep taxes low for everyone in the end. His bold attempts on closing inefficient tax loopholes and offshore tax havens will help pay for his proposals without passing on further deficits. The net gross of his proposal gives a generous cut for the general public, and the plan would reduce the taxes as a share of the economy to less than eighteen percent. The Obama plan will achieve this by cutting spending overall.
Like every president before him, he will attempt to repeal the tax plan of the president prior. Ordinary families will see a return to the tax rates they were at in the early nineties. Capital gains for families earning below the quarter million mark will continue to stay the same, and the top dividends rate for people making over a quarter million will be set at twenty percent. The estate tax will be effectively repealed for almost all of estates. For the remaining elite, Obama will retain a rate of forty-five percent.