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.
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."â€¨ Barack ObamaRead more about Momlogic's financial expert Danielle Hoston.