Politics

Obama’s Tax Cuts Target Parents, Families with 2 Incomes

Published

11 years ago

February 3, 2015

President Barack Obama delivers remarks at the Department of Homeland Security on his FY2016 budget proposal, on Monday, Feb. 2, 2015, in Washington. Obama warned congressional Republicans Monday that he won’t accept a spending plan that boosts national security at the expense of domestic programs for the middle class. (AP Photo/Evan Vucci)

STEPHEN OHLEMACHER, Associated Press

WASHINGTON (AP) — President Barack Obama is proposing nearly $280 billion in tax cuts for low- and middle-income families, but not everyone will benefit.

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.

For families making between $50,000 and $75,000 a year, about a quarter of them would get a tax cut, averaging $545, according to the analysis. About 6 percent would get a tax increase, and the rest — about 70 percent — would see no change in their tax bill.

Among the bottom 20 percent — families with incomes averaging $15,600 — nearly a third would get tax cuts averaging $617. The rest would see little or no change in their taxes.

“The key thing is that, overall, there will be winners, losers and a lot of people unaffected,” said Roberton Williams, a fellow at the Tax Policy Center.

The center’s analysis focused on the effects of the two-earner tax credit, the child-care credit, the expanded education credit, the tax credit for low-wage workers and the program making it easier for workers to enroll in retirement accounts, Williams said. The analysis also took into account Obama’s proposal to increase taxes on some investments and estates.

All of these proposals were part of Obama’s larger budget plan, which he unveiled Monday.

Obama would pay for middle-class tax cuts by raising taxes on the wealthy — including increasing the tax on capital gains — and changing the way the U.S. taxes the foreign profits of American corporations. Obama’s proposals are designed to further talks on Capitol Hill about revamping American business taxes, lowering the overall tax rate while eliminating or reducing many tax breaks.

Obama’s proposed tax increases, however, are running into strong opposition from Republicans in Congress.

“I want to work with this administration, and I hope that we can find common ground,” said Rep. Paul Ryan, R-Wis., chairman of the tax-writing House Ways and Means Committee. “But the president has to demonstrate that he’s interested in governing, not just posturing.”

Obama’s proposed tax cuts are getting a friendlier welcome — House Speaker John Boehner, R-Ohio, said he is open to Obama’s plan to increase a tax credit to help pay for childcare expenses. But Boehner has been critical of Obama’s overall plan.

The Obama administration says its proposal addresses decades of rising income and wealth inequality, and a tax system that “lets the wealthy shelter hundreds of billions of dollars from taxes each year.”

“The president’s budget proposes targeted policies to strengthen the middle class, level the playing field for American businesses, create more fairness in our tax code, and lay the groundwork for long-term economic growth for our country that is broadly shared, all while setting a course to put our country on sound fiscal footing,” Treasury Secretary Jacob Lew said in a statement.

Among Obama’s proposed tax cuts for middle- and low-income families:

— Create a tax credit of up to $500 for families with a second wage-earner, which the administration says would benefit 24 million couples. Cost: $89 billion over 10 years.

— Triple the child care tax credit — to a maximum of $3,000 per child — and make the full credit available to families with incomes up to $120,000. Families with higher incomes could get a reduced credit. Cost: $50 billion over 10 years.

Obama’s plan would repeal tax breaks for flexible spending accounts for child-care expenses.

— Extend the Earned Income Tax Credit to low-wage workers with no children. Cost: $60 billion over 10 years.

— Consolidate several education tax breaks into an enhanced tax credit of up to $2,500 a student to help pay for college expenses. The tax credit, which is scheduled to expire at the end of 2017, would be made permanent. Cost: $31 billion over 10 years.

Obama initially proposed to scale back the tax benefits of college savings accounts, known as 529 accounts. But he dropped the proposal after getting resistance from both Republicans and Democrats in Congress.

___

Follow Stephen Ohlemacher on Twitter: http://twitter.com/stephenatap

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Life Expectancy in Marin City, a Black Community, Is 15-17 Years Less than the Rest of Marin County

“Marin City residents have been fighting for years just to stay here. Residents live with the fear of being forced out, public housing torn down and rebuilt for the wealthy. Due to ongoing issues continually being ignored, residents feel they must be empowered to make their own decisions for the future survival and protection of their community,” said Terrie Green, a lifelong resident and executive director of Marin City Climate Resilience (MCCR).

Published

5 days ago

February 3, 2026

Oakland Post

Marin City community leaders (l.-r.): Terrie Green, executive director of Marin City Climate Resilience (MCCR); Wambua Musyoki, Stanford University; Khamil Callahan, Santa Rosa Junior College; Serenity Allen, Xavier University; and Chinaka Green, MCCR associate director.

By Ken Epstein

People may be aware of the existence of Marin City and know a little about its history as a center of U.S. resistance to fascism in the World War II. But fewer know of the community’s ongoing struggles to survive potential displacement while facing severe toxic health and environmental conditions on a daily basis.

These conditions cause chronic disease and premature death, dramatically shown in the sharp difference in life expectancy between Black and white people living in households only a few miles apart.

A historically African American enclave, Marin City, occupies a 0.5-square mile area between Mill Valley and Sausalito with its own freeway exit near the Golden Gate Bridge. In contrast, the rest of Marin County rates among the healthiest, wealthiest, and most environmentally friendly counties in the country. However, it is one of the least racially equitable counties in California, with Black residents being the most impacted, according to the Advancement Project, a civil rights organization,.

The community owes its continued existence to the World War II generation that came to the Bay Area from the South to work in the shipyards and to the resiliency of its residents. Despite often facing discriminatory practices, such as redlining and a segregated school district, Marin City residents have continually created a strong community rich in culture, spirituality, and community values.

The current statistics are brutal. At present, Marin City residents face more than a 17-year difference in life expectancy compared to neighboring cities and towns. Contributing to these conditions are a lack of investment in public housing and infrastructure: unsafe drinking water, air pollution caused by proximity to the U.S. 101 freeway, unsanitary stormwater drainage that produces mold and mildew, as well as old and broken lead pipes and sewage in homes.

As an unincorporated community, Marin City residents must rely primarily on the elected Marin County Board of Supervisors, Department of Public Works, Transportation Authority of Marin and Caltrans for the decisions and investments that impact their lives.

MCCR’s focus is on environmental justice. Its purpose is to empower and advocate for individuals to embrace sustainable living, envision a future free of environmental harm and collectively work towards a better Marin City. MCCR’s motto is “Forever Marin City.”

MCCR has created a unique team of Marin City Youth Environmentalists who have studied and researched environmental issues impacting the health of the community.

Serenity Allen is an MCCR Youth Coordinator/Young Environmentalist studying to be a medical social worker at Xavier University. She has been working in the community for six years. “I strongly believe that where you live should not determine how long you are able to live,” she said.

Allen referred to the work done by former Marin County Public Health Officer Dr. Matt Willis, who stated that Marin City has a 17-year life expectancy difference between residents of Marin City (77 years) and more affluent areas like Ross (94 years).

“The research shows this gap is heavily correlated with race and socioeconomic status. Sausalito, which is not even two miles outside of Marin City, has a life expectancy of 92 years,” Allen said.

“Many elements contribute to this gap,” she said. “A major factor may be the 12 acres of toxic flood waters that pour down off the highway into low-lying Marin City.

In addition, “We do not have a barrier wall protecting us along our highway; the rest of Marin County has 16 barrier walls to protect from noise and air pollution. Marin City has been fighting for a barrier wall since 2008,” she said.

Octavien Green, an MCCR high school environmentalist, spoke about the impact of the absence of recreational facilities on health and wellness, particularly for youth.

“Lack of investment in our recreational facilities means we have fewer spaces and opportunities for physical activity, which contribute to serious health problems like heart disease, diabetes, weak bones and low energy, especially for kids. We are presently involved in an ongoing struggle just to rebuild a sports ball field for the community that’s been unusable for the last 15 years.”

“Marin City is the center of Black culture for all of Marin County,” said Green. “Historically, though, the county has not invested in the community, and you see it in the life expectancy, the highest chronic disease and disability rates and eight times the amount of asthma. In the last six weeks, we’ve had three young people in their 40s and 50s die from heart attacks. This is alarming and must be addressed.”

Looking toward next steps, she said, “The way forward is through incorporation,” which would mean that Marin City would have its own elected leadership to find solutions that determine the future of the community.

This is the first in a series of articles on Marin City, examining conditions in the community and interviewing both community members and public officials.