Obama Unveils Tax Initiatives to Help Middle Class - Wall Street Journal

WASHINGTON—Previewing some of the main themes of this week's State of the Union address, President Barack Obama proposed Monday an expansion of the child-care-tax credit, a cap on student-loan payments and other initiatives designed to help the middle class.

Under its proposal, the White House says all eligible families making under $115,000 a year would see a bigger dependent-care-tax credit. Families could claim up to $3,000 in expenses for one child or $6,000 for two children. Families making less than $80,000 annually could claim a maximum credit of $2,100, up $900 from current law.

Mr. Obama also proposed limiting a student's federal loan payments to 10% of his or her income above a basic living allowance, requiring all employers to give employees the option of enrolling in a direct-deposit IRA, expanding the "saver's tax credit," and adding $52.5 million to a program that helps families care for aging relatives.

Republican opposition to the plans is likely to center on the impact of the automatic-enrollment proposal on small businesses, and the overall cost of the measures. House GOP Leader John Boehner complained that none of the initiatives would boost jobs. - Obama Urges Aid for Middle Class
Obama Proposes Middle-Class Plan