Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Obama acknowledges middle-class economic woes

By Gerri Willis, personal finance editor


NEW YORK (CNN) -- Here are some of the White House's proposals:

1. Child care assistance

home_rich_cover.03.jpg
For more information on managing your largest investment, check out Gerri Willis' 'Home Rich,' now in bookstores.
CDs & Money Market
MMA 0.25%
$10K MMA 0.24%
6 month CD 0.35%
1 yr CD 0.54%
5 yr CD 1.31%

Find personalized rates:
 

Rates provided by Bankrate.com.

The administration is considering nearly doubling the child care tax credit for families earning less than $85,000. Families earning up to $115,000 will see an increase in their child care tax credit.

According to the administration, two-thirds of families with children are headed by working parents or a single working parent.

2. College affordability

The White House's proposal would limit loan payments to 10% of discretionary income, expanding the current income-based repayment plan. Mark Kantrowitz of Finaid.org estimates this could cost the government $400 to $500 million over the next ten years.

3. Retirement security

A proposal would expand the savers tax credit, matching 50% of the first $1,000 of contributions for those who making $65,000 or less. The government would also promote annuities and other forms of lifetime "guaranteed" income.

The proposal also calls for improved disclosure of 401(k) fees.

4. Elder care assistance

The administration is also advocating increasing the funding for caregiver support programs. It would provide more funds for adult daycare, in home services and transportation.

-- CNN's Jen Haley contributed to this article.

Talkback: Do you feel the president's initiatives, if enacted, will help out the middle class? To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.69%3.76%
15 yr fixed2.80%2.82%
5/1 ARM3.07%3.10%
30 yr refi3.69%3.76%
15 yr refi2.83%2.83%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 16,204.97 -211.61 -1.29%
Nasdaq 4,363.14 -146.41 -3.25%
S&P 500 1,880.05 -35.40 -1.85%
Treasuries 1.85 -0.02 -0.86%
Data as of 12:59pm ET
Company Price Change % Change
Bank of America Corp... 12.95 -0.30 -2.26%
Facebook Inc 104.07 -6.42 -5.81%
Freeport-McMoRan Inc... 5.68 -0.04 -0.70%
Microsoft Corp 50.16 -1.84 -3.54%
General Electric Co 28.54 -0.64 -2.19%
Data as of Feb 5

Sections

Anheuser-Busch has been the exclusive beer advertiser featured during the Super Bowl since 1975, and it's spent more on Super Bowl advertising than any other company for the last five years in a row. More

The economy is better than it was, but not even President Obama is ready to declare it's booming. More

Laurie Segall sits down with Foursquare's new CEO Jeff Glueck to discuss the company's latest round of funding at a lower valuation, and their hybrid consumer/enterprise business model. More

Nonprofit JumpStart has launched a new $10M fund that will only invest in women and minority-led startups. The catch: You have to move to Ohio. More

Portland, Oregon, is often described as the last affordable cool city on the West Coast. But as more people move to the city, it's becoming increasingly unaffordable. More