President eyes middle-class families
President Barack Obama is expected to outline a package of incentives today that are aimed at helping middle-class families, according to various media reports.
As a precursor to his State of the Union address on Wednesday, the president will outline a child-care credit today along with other measures that were developed by the White House Task Force on Middle Class Families, which is led by Vice President Joe Biden, CNBC.com reported.
“There are immediate steps we can take to reduce the strain on family budgets by helping middle-class families manage their child and elder care responsibilities, save for retirement, and pay for college,” the White House said in a statement.
Among other things, the proposals would require companies that do not offer retirement plans to enroll their employees in direct-deposit retirement accounts unless the workers opt out; increase a tax credit for retirement savings for families making up to $85,000 a year; and change some of the rules for 401(k) employer-sponsored savings accounts to make them more transparent, CNBC.com said.
In addition, the president will propose boosting government spending by $102.5 million for programs aimed at helping families who provide home care for an aging relative.
He also will propose a plan to ease the payment of college student loans by limiting borrowers’ payments to 10 percent of their income above a basic living allowance.