President Obama's Plan: Soak The Rich, Coddle The Middle Class

Posted: Jan 25, 2010 10:24 AM
The early word about Obama's State of the Union address on Wednesday is that the President will announce extensive plans to alleviate financial burdens on America's middle class — his most reliable bloc of voters. These moves are apparently designed to distract such voters from his failure on health care reform.

The proposals include doubling the child care tax credit for families who make less than $85,000; a $1.6 billion increase in child care funding, and "capping student loan payments to 10 percent of income above 'a basic living allowance.'"

If you make under $85,000 (but not $86,000!) he also wants you to get a tax credit that matches the amount you save for retirement, and a tax break if you are caring for elderly relatives.

I like fewer taxes, in any way, shape, or form. But this proposal, like all other special taxbreaks for special classes of Americans, will further dis-incentivize people from trying to make more than the government allows.