A $2000 Paycheck Credit Bonus in 2015 and Other Middle Class Tax Breaks

In a push to reengage their voting base Democrats have proposed a $2000 paycheck credit bonus as part of a wide ranging middle-class tax credits proposal. The paycheck credit proposal, architected by House Rep. Chris Van Hollen (D-Md.), would only be available to middle class Americans, which are defined as couples earning less than $200,000 or $100,000 for singles.

Other provisions in the Van Hollen proposal include tripling the child care tax credit and providing a $250 saver’s bonus for workers who save at least 50% of their tax credit. There are also provisions to reform the corporate tax code to incentivize companies to align CEO pay with worker pay and address the growing income inequality between those in the C-suite and the rest of the organization.

The $1.2 trillion proposal would be paid, not surprisingly based on past proposals, by imposing a new 0.1% financial transaction fee or tax on the richest 1 percent of Americans and closing tax related tax loopholes for the ultra-rich.

However with Republicans controlling Congress it is highly unlikely that this proposal will pass in its current form and is merely just the first volley in the tussle between Democrats and Republicans to capture the critical middle class’s vote leading into the 2016 presidential election. Republicans have yet to formally respond to the proposal but are more likely to focus on reforming the corporate tax code to improve economic conditions for business and the middle class, rather than raise tax rates for high income earners.

I will continue to provide updates on these middle class tax credits  and encourage you to connect via RSSFacebookTwitter or Email to get the latest news.

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5 thoughts on “A $2000 Paycheck Credit Bonus in 2015 and Other Middle Class Tax Breaks

  1. What does this mean that people that earned less then 200,000 will receive 2,000 on their taxes or what

  2. Great comments all. Just shows the divisive nature of these tax breaks and how hard it is to broadly target the “middle class” . I don’t think any tax or policy can adequately target the entire middle class and there will be losers and winners in any event. Frankly the decision depends on the politics rather than the actual needs of the electorates.

  3. The good news at least from this is that the democrats have stopped focusing on the minimum wage earners and instead on helping the middle class who don’t qualify for most of the low income subsides. Republicans now have to follow suit so should be some nice tax breaks this or next year at least

  4. Why wouldn’t you? Are people who make more than you not entitled to the same amount because they don’t need it? Granted 200k is a heck of an income, but what if that 200k family is struggling too. Consider that they or anyone else in between might have had health related hardships that burdened them with large medical bills, for example. Or maybe they have several kids, with some entering college, or an aging parent they need to take care of. With the rising costs of everything, I don’t think it’s right to assume that even the average 200k earner does not need or deserve the full and equal sum. You don’t know everyone’s situation. Everyone in this bracket should be entitled to the same amount. The government and big business has been fleecing the middle class for years. We should tax the banks we bailed out, until everything they took is paid back in full, and then distribute that back evenly to the rightful owners of that money – the middle class tax payers.

  5. I’m always puzzled when I see information like this. The broad definition of “middle-class” and offering the same credit or benefit to this “middle-class” group doesn’t seem equitable. Our joint income is $58,000 and the politicians want to give the same credit to folks earning $199,000? If my earnings were $199,000 I sure as heck wouldn’t be looking for the same tax credits as some hard-working folks making only $58,000?

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