Friday, February 27, 2015

Obama "Middle Class Tax Cuts" Amount to $12?

Yeah some "fighting for the middle class." You cannot even pay for an entire McDonalds meal for a family of four with this pitiful cut.
But these proposals are mostly small in scope, with limited near-term effects on middle-class economic fortunes. The White House had a telling spat last month with the Tax Policy Center, a center-left joint venture of the Urban Institute and Brookings Institution that produces estimates of the distributional impacts of tax proposals. Len Burman, the center’s co-director, who was a Treasury official in the Clinton administration, ran the numbers and found the president’s plan produced an average tax cut of just $12 for families in the middle quintile — a surprising result for a plan aimed at the middle class, and one that produced inconvenient headlines.
What the White House needs to do is dangle tax incentives for companies that follow Wal-Mart's lead in jacking up entry level pay to $9. Or even better tripling the earned income tax credit so every American making below a certain amount can get more than $12 back from so-called "tax cuts." That will get people spending again. Put a couple $1000 in someones pocket and they can pay down debt or put a down payment on a car or something similar.

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