How Does Obama's New Tax Plan Help the Middle Class?


Quick Answer

President Barack Obama's tax plan helps the middle class by offering credits, lowering rates and providing savings for parents with children, as noted by the White House website. As of 2015, an average middle class family recognized approximately $3,600 in tax savings during President Obama's first term.

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Full Answer

The American Opportunity Tax Credit offers a tax cut for middle class parents who have a child enrolled in a college program. The credit varies each year and can be taken for each year that a student is enrolled in college, as noted by the official Internal Revenue Service website. In addition to the American Opportunity Credit, taxpayers have the option of electing the Lifetime Learning Credit.

The Affordable Care Act is another part of the tax plan that has made health care more accessible to Americans. This act sets requirements on how much coverage an insurer must provide in addition to strict limitations on increases in monthly insurance premiums, as listed by the White House website. In addition, insurers can no longer deny coverage for pre-existing conditions. Preventive benefits, such as birth control and regular vaccinations, are included under this program. Young adults can also stay on their parents insurance policy much longer if an independent insurance plan is not affordable.

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