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Obama's Plan for Your Money

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Financial guru Danielle Hoston's "Money Mondays" series continues.

Barack Obama

Guest blogger Danielle Hoston: To be honest, I still can't believe it... Tomorrow, Barack Obama will take the highest office -- and arguably, the most difficult job -- in the country. No matter what side of the fence you were on at election time, it's hard to deny the incredible excitement and energy surrounding this week's inauguration. As soon as this week's festivities are over, however, the pressure is on! The economy has taken center stage for obvious reasons and Obama has made it clear that getting his $825 billion stimulus package passed through Congress is his top priority.

So how will this economic stimulus plan directly affect you? To start, here's a summary of the impact of Obama's tax cut plan:

Married Couple Making $75,000 with two children, one of whom is in college  $3,700
 [includes $1,000 Making Work Pay; $500 universal mortgage credit; and $4,000 college credit net of current college credits]  
Married Couple making $90,000 $1,000 
Single Parent making $40,000 with two young children and childcare expenses. $2,100
[includes $500 making work pay; $500 universal mortgage credit, and $1,100 from Obama expansion of the child care tax credit] 
70-Year Old Widow Making $35,000 $1,900 
Calculations based on IRS Statistics of Income. Tax savings is conservative; does not account for up to $500 in savings from expanded Savers Credit and the $2,500 in savings per family from the Obama healthcare plan.

If you don't see your specific filing status here, you can also calculate our tax cut here. With more detailed filing information, you can really get a good idea of what you can expect here.

Given the state of unemployment, shaky credit and real estate markets, and the closing of major businesses in almost every industry, it seems impossible that the end of this recession could happen anytime soon. But aren't unbelievable and impossible things happening almost daily? Last week, a plane crashed into the Hudson River with zero fatalities. As of Sunday, the notoriously awful Arizona Cardinals are headed to the Superbowl. On Tuesday, the most unlikely election candidate at one point will be our President. Perhaps... just perhaps... the impossible is possible.


How much will you save with Obama's tax cut? Will these tax cuts help end the recession?

"Money is not the only answer, but it makes a difference."
 Barack Obama

Read more about Momlogic's financial expert Danielle Hoston.

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8 comments so far | Post a comment now
Selene January 19, 2009, 9:00 PM

The reason it appears that the economy is in bad shape is because of the balloons that popped. When you pop a balloon the air is still there it’s just not in the balloon.

We are loosing money that’s not really money. Equity is not real money, stock prices are not real money, value of merchandise is not real money. It’s estimated or valued but it’s not the same as money in the bank.

What’s important is learning the value of money.

As a parent you want your children to understand the value of a dollar so you make your child work for that dollar. But when you purchase items on credit are you making a good example of the value of that same dollar? You are spending money you haven’t even earned yet.

Anonymous January 19, 2009, 11:27 PM

Great information Danielle.

Leandro January 20, 2009, 4:55 PM

I’m unemployed and not married so I don’t see how I fall into the tax cut, but either way I’m happy that to those families who need the help, they will probably be the most affected by this proposal. Danielle as always your blogs are always full of great information. And thats something we can all appreciate.

Anonymous January 20, 2009, 8:26 PM

Thank you for the links. I have been wondering how Obama’s new tax plan would affect me. I was under the impression that my taxes would be raised but it turns out i get a tax cut!

Jerwayne January 20, 2009, 8:49 PM

Great info. It still shocks me that so many people remained uninformed about Barrack’s planned tax cuts and tax hikes.

lesa ross January 21, 2009, 2:26 AM

Great info. There’s alot of people that can benefit from this information. I’ve forwarded it to alot of my girlfriends

leslie January 28, 2009, 11:38 PM

I just want the economy to get better. I am so tired of these CEOs making all this money and they are laying off those who really need the money. Why not get rid of the CEOs and bring in new blood at a lower rate of pay. We need to look at the president of JAL (Japanese Airlines) He makes only $90,000/year and rides to work on a bus, doesn’t have an expensive office, and is accessible to all employees. You never know where you might find him at in the company. He might be sorting mail, newspapers, anywhere except hiding behind closed doors in an expensive office built on the backs of the employees. GET RID OF THE HIGH PAID CEOS.

SolisBeverly September 19, 2010, 1:30 PM

The credit loans suppose to be useful for people, which would like to ground their business. By the way, it’s not hard to receive a auto loan.

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