Many Middle-Income Families Would See Only Small Changes in Tax Bill Under Obama’s Budget
Obama’s proposed budget calls for a total of $1.5 trillion in new taxes over the next decade, mostly on corporations and high-income households. He would use much of that money to pay for targeted tax breaks for low- and middle-income families.
The proposed tax cuts would benefit households with two wage earners, families with young children in child care and those with older children in college. One proposal would automatically enroll workers in individual retirement accounts, unless they opt out. Another would extend the Earned Income Tax Credit to low-wage workers without children.
Obama calls his tax and spending plan “middle-class economics.” But middle-income families that don’t fit these categories won’t see many changes in their taxes, according to an analysis by the Tax Policy Center, a research group formed by the Urban Institute and the Brookings Institution.