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

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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

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