Obama Announces Major Middle Class Tax Relief Plan
Washington, DC – U.S. Senator Barack Obama today announced a bold and innovative plan to reform America’s tax code so that it works for the middle class in a speech to the Tax Policy Center in Washington, DC. Obama’s plan would provide a substantial tax cut for nearly all working Americans, for homeowners, and for low- and middle-income seniors.
Obama made the case that our current tax code reflects the wrong priorities by rewarding wealth instead of work, and he pledged to restore fairness to the tax code to strengthen the American economy.
Obama’s middle class tax relief plan would provide $80-85 billion in tax cuts to America’s workers, seniors and homeowners by:
- Cutting taxes for 150 million Americans and their families, allowing them to get a tax cut of up to $1000.
- Easing the burden on the middle class by providing a universal homeowner’s tax credit to those who do not itemize their deductions, immediately benefiting 10 million homeowners, the majority of whom make under $50,000 per year.
- Eliminating the income tax for any American senior making less than $50,000 per year, eliminating income taxes for about 7 million American seniors.
- Simplifying tax filings so millions of Americans can do their taxes in less than 5 minutes.
Obama would pay for his tax reform plan by closing corporate loopholes, cracking down on international tax havens, closing the carried interest loophole, and increasing the dividends and capital gains rate for the top bracket.
