Today, on Tax Day, President Obama will meet with several working families, just like the ones all across America, who are facing tough choices during this economic crisis. President Obama underscored his commitment to a simpler tax code that rewards work and the pursuit of the American dream and supports a future of sustained economic growth that creates good jobs and rising incomes for all Americans. He discussed the unprecedented action his Administration has taken to give tax cuts to the Americans who need them, while jump-starting growth and job creation in the process.
Many working Americans have lost a job or are fighting to keep their small business open. Many more are struggling to make payments, to stay in their home, or to pursue a college education. To help middle-class families get back on their feet and restore some fairness to the tax code, as part of the American Recovery and Reinvestment Act, President Obama signed the Making Work Pay tax credit into law. As a result, 2.4 million families in Indiana are seeing more money in their paychecks.
“Since the Recovery Act was signed into law we have delivered real and tangible progress for the American people. I am proud to announce that my Administration has lessened the tax burden on working families while also restoring some balance to the tax code,” said President Barack Obama.
The American Recovery and Reinvestment Act is based on the simple premise: what is good for working families is good for the economy and what is good for the economy is good for working families. Specifically, cutting taxes for working families helps to create jobs because these families are the most likely to spend the money. And staving off a deep recession disproportionately helps working families that would have been most likely to get hurt by the recession. Here are some of the highlights of the plan:
American Recovery and Reinvestment Act: A Plan to Create Jobs and Help Families
95% of all working families will receive a tax cut
70% of the tax benefits goes to the middle 60% of American workers
2 million families will be lifted out of poverty by the tax cuts in the Recovery Act
More than $150 billion in tax cuts will help low-income and vulnerable households during the economic recovery
About 1 Million jobs will be created or saved by these tax cuts alone
Already, over $3 billion of tax credits have been paid out to first-time homebuyers.