Wednesday, January 27, 2010

The Missing Middle

Via Wall Street Journal Blog | The Juggle | January 27, 2009
Family-Aid Proposals in State of the Union Address
By Sue Shellenbarger, Associated Press

Highlights from the SOTU and The Juggle's Post on the President's Family Aid Proposals to help the middle-class or the "missing middle."

–Child-care tax credit: Increasing the tax credit to 35% of qualifying expenses. This would increase the tax credit by $450 a year for one child and to $900 for two or more children. However the cap on eligible expenses remains the same at $3,000 for one child and $6,000 for two.

–Student-loan relief: The President also wants to cap federal loan repayments at 10% of their income, after a basic living allowance.

–Child-care funding: The President proposes to add an additional $1.6 billion in child-care funding expanding child-care subsidy programs for low-income families.

–Elder-care aid: And he proposes to add a $52.5 million Caregiver Initiative which increases funding for "respite care, counseling, training and referrals for people caring for elderly relatives."