January 25th, 2010
09:24 AM ET
5 years ago

Obama to propose almost doubling child care tax credit

Washington (CNN) – President Barack Obama will propose nearly doubling the child-care tax credit for middle-class families on Monday, according to a White House official.

The proposal is one of five recommendations from the president's Middle Class Task Force, which was established one year ago this week.

It comes as an increasingly populist White House struggles to regain political momentum among middle-class, independent voters frustrated by the slow pace of the economic recovery.

Obama will push to increase the Child and Dependent Care Tax Credit rate from 20 to 35 percent for families making under $85,000 a year. Families making from $85,000 to $115,000 also would see an increase in their tax credit, the official noted.

At the same time, lower-income families would receive a $1.6 billion increase in child care funding, the largest one-year increase in two decades.

In addition, the White House will propose limiting a student's federal loan payments to 10 percent of his or her income above a basic living allowance.

The administration also will push for the creation of a system of automatic workplace individual retirement accounts, requiring all employers to give workers the option of enrolling in a direct-deposit IRA.

Fourth, the White House will propose expanding tax credits to match retirement savings, while also enacting new safeguards to protect retirement savings.

Fifth, the administration will push to expand federal support for families caring for elderly relatives, "helping them manage their multiple responsibilities and allowing seniors to live in the community for as long as possible," the official said.

Since its establishment, Middle Class Task Force has held 11 meetings around the country and at the White House, the official noted.

– CNN's Suzanne Malveaux contributed to this report


Filed under: President Obama
soundoff (42 Responses)
  1. JB

    So families above $115K get no relief? Dual income, just above that mark with two kids in daycare, I sure don't consider myself above "middle class".

    January 25, 2010 10:10 am at 10:10 am |
  2. Scott, Tucson

    How about cutting the amount of payroll taxes this government steals from our paychecks? Let us the American people stimulate the economy by being able to spend more of OUR money ourselves instead of having obama, Pelosi and Reid do it for us.

    January 25, 2010 10:12 am at 10:12 am |
  3. Shmeckell

    Buying votes is not going to help the country. That was the problem with the first stimulus.

    January 25, 2010 10:14 am at 10:14 am |
  4. AJ

    Screw the child care tax credit. What about those of us who do not have children? Once again, preferential treatment goes people that continue to have children whether they can afford them or not. I could care less about someone elses child care. I dont mind paying for education but child care? That shouldn't be anyone's responsibility but the parents. So far, those with children have so many advantages it's unreal. Maternity leave, per child tax credit, childcare tax credit, never ending welfare, so on and so forth. When will parents actually have to take responsibility for these children? The money would be better spent for family planning and abortion!

    January 25, 2010 10:20 am at 10:20 am |
  5. Rick McDaniel

    Totally the wrong thing to do. This is a huge mistake, one of the biggest he has made, if he does it.

    We MUST reduce world population, if we are to save this planet from accelerated destruction by humans. The only way to do that, is to not only reduce child benefits, but to tax children, with increasing taxes for each additional child, beyond one.

    If we do not reduce world populations, the planet will cross the environmental equivalent of the "point of no return" line, in the not too distant future.

    Obama is supposed to have some understanding of environmental issues. This stance shows clearly, that he does not.

    January 25, 2010 10:28 am at 10:28 am |
  6. Anne P

    Ok, now here's where I strongly disagree w/the President. INCREASE tax credit for children. Hey, we should be taxing MORE for children to promote less per family. Why are we rewarding huge families when they are the bigger burden to resources. This kind of thinking has to change. If people can afford more kids, they need to pay MORE taxes...pure and simple. Boo on this!

    January 25, 2010 10:30 am at 10:30 am |
  7. Chipster

    I would appreciate this more if I were a parent but, although I pay school taxes in my district, I never receive any of the credits that go to those who choose to have children. Those who have more children are never charged more in taxes to support the schools! Please understand that I don't object to investing in future generations. Education is my number one priority. However, childless couples and singles never get these tax credits but must subsidize those who have one child after the other, even if they cannot afford them. The world is overcrowded and it's counterproductive to give people a financial incentive to overpopulate it even more.

    Childcare funding at least makes sense. With decent childcare, mothers can work to support their family. The cost of childcare often costs more than many single mothers or couples can earn.

    January 25, 2010 10:31 am at 10:31 am |
  8. obama the liar

    this obama money keeps falling from the sky.

    January 25, 2010 10:36 am at 10:36 am |
  9. awaitingmoderationby CNN

    A year in office and he finally comes up with something that makes sense, now if he can just get the parents to work, he may be finally heading the right direction. Why could this not have been proposed a year ago instead of "cap & trade" to combat the non existant problem of "global warming." These seem like common sense, rather than the Pinky and the Brain stuff Obama has been trying for the last year.

    January 25, 2010 10:37 am at 10:37 am |
  10. WENDELL

    Whoopeee.

    Crooked bankers get millions for new yachts and we get enough to fill up our gas tank twice.

    This is CHANGE? I get it now ... spare change for the common man and gold bricks for criminal bankers and defense contractors.

    January 25, 2010 10:38 am at 10:38 am |
  11. liberal wingnut

    That sounds good but OBAMA tripled our national debt in just one year!!!

    And I pretty sure he's far from done

    January 25, 2010 10:44 am at 10:44 am |
  12. Senior, NC

    Obama promised that, if elected, seniors would not have to pay Federal taxes. Seniors, let's not forget that in 2012.

    January 25, 2010 10:48 am at 10:48 am |
  13. Dan

    When will this moron of a president realize that money does not grow no trees. The child care tax credit is already exploited by millions of people who have children just so they can get a tax writeoff. Now he wants to give them more money? The child care tax credit should be for one child only, and higher credits should be given to families who chose not to have children.

    January 25, 2010 10:48 am at 10:48 am |
  14. rjt

    Better do something. Have you seen your tax return shrink this year under Obama? I know I have.

    January 25, 2010 10:48 am at 10:48 am |
  15. gary davis harbor oregon

    THE PARTY OF THE PURIST will have a field day with this one .. how dare we give anything to those who need it ?
    I want equal treatment ,I want the wealthy to pay there share ,
    I want the stock market to pay back the abuesive way the riped us off , I want the oil , and the banks to have to repay everything they took ,
    I want the lenders in jail, I quess
    I want more than the republican purists are willing to help us get LOL :)

    January 25, 2010 10:52 am at 10:52 am |
  16. Mark

    Is this change you can believe in?

    Despite President Obama's long history of criticizing the Bush administration for "sweetheart deals" with favored contractors, the Obama administration this month awarded a $25 million federal contract for work in Afghanistan to a company owned by a Democratic campaign contributor without entertaining competitive bids

    January 25, 2010 10:55 am at 10:55 am |
  17. Kristin, WI

    Mr. President...I am all in favor of tax cuts/benefits as you are proposing. My question though is – what government spending are you going to cut, in order to keep these tax cuts budget neutral? You can't reduce the federal governments revenue and not decrease its spending at the same rate..unless of course, you wish to continue to put our nation further and further into dangerous debt.

    January 25, 2010 10:55 am at 10:55 am |
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