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

Obama to propose almost doubling child care tax credit

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2010/images/01/20/art.obama0120.gi.jpg caption="President Obama will announce a series of proposals on Monday to help the middle class.]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. If you want something ruined, put a republican in charge

    To which, the compassionate conservatives say, "No! We need tax cuts for the wealthy. Helping ordinary people is anti American."

    January 25, 2010 09:32 am at 9:32 am |
  2. ATL Guy

    And the Republicans can't run fast enough to the microphones to say NO!!!

    January 25, 2010 09:32 am at 9:32 am |
  3. Connie Brighten

    Obama = spend, spend, spend. I hope somewhere in Obama's technological improvements there are money trees to pay for all his dreams of making us all equal.

    January 25, 2010 09:33 am at 9:33 am |
  4. joe smith

    now, should the administration really want to stimulate the economy, they might devise a plan to forgive student loans; after all, these are the very people who also will have been trapped in the mortgage mess, now the loss of their job, etc..we can send money all over the world, and for good causes, but our furture is our young people..cut them a break..

    January 25, 2010 09:34 am at 9:34 am |
  5. Bill

    Wheeeeee!!!! Time to buy more votes by promising people money!!!! Never mind that it has to come from SOMEWHERE! This strategy worked to put Obama in office, I suppose it will work again.

    We're looking more and more like France, people. Wake up before it's too late.

    January 25, 2010 09:34 am at 9:34 am |
  6. Mike

    It is not just the slow recovery of the economy it is discontent with nobama and his liberal congress who have spent money we do not have. He has mortgaged our generation plus the next two generations income and most of that borrowed money was wasted. This administration does not know where most of the spent money went but yet they want more not to mention nobamas health care deform. Also he is trying to create wealth enby hoping people will ignore his ineptness as the President.

    January 25, 2010 09:36 am at 9:36 am |
  7. People power

    President Obama should start doing good for the country as whole than working 7X24X365 to distribute the wealth. We are a Capitalist society and that’s the foundation of our country. I don't think we should have an income limit for a child credit or new home buyers program. Stop playing Robinwood Mr. President.

    January 25, 2010 09:37 am at 9:37 am |
  8. buckeye

    Finally, a modest investment in America's children rather than always the colossal ones in big banks and the bloated military budget. What, after all, is our future?

    January 25, 2010 09:39 am at 9:39 am |
  9. If you want something ruined, put a republican in charge

    I wonder how the arrogant slime from the GOP will react to any proposals, now that they have their 41st vote in the senate.

    January 25, 2010 09:39 am at 9:39 am |
  10. patNY

    This will do nothing for the economy, except put more money in the hands of unwed single mothers who can't stop having babies. If Obama really wants to stimulate the economy, put more money in the hands like myself, somone who makes $120K but has law school debt, but makes too much money for school loan interest tax credit. Give me the tax credit, and I will use put that money back into the economy because I am gay, live with my partner for 15 years, and we are the typical disposable income spenders who will go to small businesses and keep them going with our new found money. But no, Obama only cares about the poor people who shouldn't be having babies in the first place. What a waste my vote on him was!

    January 25, 2010 09:40 am at 9:40 am |
  11. RobK

    Right. Let's give families more incentive for both parents to work and send their kids to daycare.

    January 25, 2010 09:42 am at 9:42 am |
  12. Martin Marprelate

    This simply confirms the fact that this President actually cares about the people of this country. This is what all of those concerned need.

    January 25, 2010 09:43 am at 9:43 am |
  13. TIM MITCHELL

    trying to buy votes with tax payers money. what about the older people with out kids?

    January 25, 2010 09:45 am at 9:45 am |
  14. scott winter haven

    Wow! Really..........You mean putting more money back into working families pocket is good for the economy? Lower taxes is good? Creating a job in the Government is not growing the economy. Spending a trillion dollars on Healthcare does not grow the economy. Cap and Tax does not grow the economy. Putting a HUGE tax on banks does not grow the economy. Running the auto industry does not grow the economy. Socialism does not grow the economy. A President who has never run a business can not grow the economy. Jeez I miss GW!

    January 25, 2010 09:49 am at 9:49 am |
  15. Liberals are worthless

    Barry will proposed Stimulus II, of course he's calling it the "Jobs Bill," and alienate even more people with his out of control spending.

    How in the world the this country elected an economic illiterate during a time of financial crisis is beyond me.

    January 25, 2010 09:49 am at 9:49 am |
  16. Alan

    What about families that choose not to let someone else raise our children?? Don't we count too??

    January 25, 2010 09:49 am at 9:49 am |
  17. Steve-O

    I spend approximately $21,600 per year on day care for three children at the local church. My wife and I both work to support our family and we can't afford not to. Of that $21,600, only $6,000 is tax deductible. The remaining is taxed at my income tax rate. Note that $6,000 covers the cost of one child at only the lowest cost day-cares in town. When my wife and I weighed the cost of day care expenses versus working income, we determined a minimum salary of $45,000 would be needed to consider having a job, which is above the median salary for our city. Luckily, we both make over this amount, but this reduces the benefit under the proposed legislation. This proposal is like the foreclosure-prevention legislation: right idea but does not go far enough.

    January 25, 2010 09:51 am at 9:51 am |
  18. adam in california

    1) if it is a non-refundable credit then it won't make a big difference on most people's taxes, since a great many families with children were pushed off the tax roles entirely by the Bush tax cuts.

    2) if this is somehow intended to stimulate the economy it won't. It won't create jobs. If it is presented as a job creator than the Obama Admin has an even lower opinion of the public than I previously thought.

    January 25, 2010 09:56 am at 9:56 am |
  19. Rob in Philly

    Our President looking out for the middle class as usual!!!! People support him we need everybody to come together even the Republicans this is the United States of America start acting like it!!!!

    January 25, 2010 10:04 am at 10:04 am |
  20. Mississippi Mrs.

    It's a four letter word. JOBS.

    No Job, no need for day care. duh.

    This Administration is buying votes. They are continuing to the socialist policies that make people DEPENDENT on The Government.

    That Dependency is what drives President Obama and the Liberal Left.
    The know what the people need.

    They must save us from ourselves. Please vote for Conservatives in 2010!

    January 25, 2010 10:04 am at 10:04 am |
  21. Black Viper

    54% of Americans are too stupid to realize this president is working for their own interest.
    Europeans are laughing out loud on how stupid we become as a nation. The media is on the mission to destroy this country with the republicans lies and hates.
    A golf athlete cheated on his wife they report for more than a month and continue to report on that.
    A supreme court justice just sold America and it's politicians to Corporations they only dedicated few minutes of news for it because it is in their best interest because all the advertisement revenue will go to them. GREED GREED GREED GREED.
    THE END OF THIS GREAT AMERICA IS NEAR. HOLD ON TIGHT.

    January 25, 2010 10:06 am at 10:06 am |
  22. Robin

    All this is is just proposals, when it becomes reality then I would say our government if for the people. Get ready dems, if you don't do something on this, YOU ARE FIRED!!

    January 25, 2010 10:06 am at 10:06 am |
  23. Bob in Pa

    That's BO, find something to make me popular again don't worry if its good government or tax reform..

    January 25, 2010 10:08 am at 10:08 am |
  24. Silence Dogoode

    Having children is elective...if people decide to reproduce why should they get a tax credit?

    Why don't we go to a flat tax when you are taxed a certain amount for your income? No credits no nothing. the form will be one page. You can fill it out yourself....oh, forgot Big government has to employ all those people and those crooks like Rangel who can't follow the tax laws to begin with....

    January 25, 2010 10:08 am at 10:08 am |
  25. Lisa

    This is great news for single a parent myself. The only thing is along with a tax credit I need help with healthcare. The only way to ensure affordable healthcare for my child is with the public option. The tax credit is great but I need healthcare too.

    January 25, 2010 10:09 am at 10:09 am |
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