With the 2008 popular election now behind us, it is time to address the issues. The issue that is most prominent in most Americans minds at this point is how president-elect Barack Obama intends to help the American economy. Presenting a plan based on reforming taxes for lower and middle income families as well as seniors earning under $50,000 annually, fixing the holes in the subprime mortgage market, and stimulating the economy, Obama hopes to revive America from its financial struggles.
However, despite his efforts, few people in Walpole will benefit from his reforms. With a household median income of about $75,000, most people will not be receiving the tax breaks or removal of the income tax, which helps those households making less than $50,000 a year. According to a 2000 census, Walpole’s population consists of only 2.2% of residents living below the poverty line and another 4.7% are seniors. These two groups are the people who are set to benefit the most from Obama’s new plan. These two demographics can look forward to reduced taxes, tax credit, and aid in establishing a savings account and avoiding falling into credit debt. Unfortunately, without any executive orders to clarify his plan, many of Barack Obama’s ideas are rather ambiguous.
Potentially the reform that will help Walpole residents the most is Obama’s “American Opportunity Tax Credit” or his “Making Work Pay” tax credit. With 25.8% of Walpole residents under the age of eighteen and another 5.2% between age eighteen and twenty-four, the “American Opportunity Tax Credit” offers support for college. This credit offers $4,000 dollars of college education completely free and then will also cover two-thirds of tuition to public colleges and universities. Obama’s “Making Work Pay” tax credit offers five hundred dollars per person or one thousand dollars per working family. This credit will provide immediate relief with taxes, and is intended to eliminate income taxes for ten million Americans, while still protecting investment into Social Security. Also the credit is intended to offset some taxes for small businesses by eliminating the overlap between employer and employee taxes. However all of this is part of Obama’s ideal economic solution, but as with anything in politics it is apt to change.
Secretary of the Treasury Henry Paulson’s reallocation of moneys provided by the Bailout may make many Americans nervous as to what effect it will have on Obama once he takes the Oath of Office, but Obama, after campaigning on the motto “the change we need”, appears ready to step in and do what he deems necessary to save a sputter American economy. Unfortunately much of his aid will not be coming to those in Walpole.