Asset Building in President Obama’s Budget Request

[This is the first post in a new blog series on the FY2011 State and Federal budgets.]

President Obama’s budget request for FY2011, released on February 1st, included specific proposals geared toward asset-building, primarily aiming to expand economic opportunity to low and moderate-income Americans.  The budget request expands the Saver’s Credit, which provides a 50% match on the first $1,000 saved in a retirement account by families earning less than $65,000 through direct deposit into the account.  President Obama also proposed requiring employers who do not offer a retirement plan to enroll their employees in a direct deposit IRA, extending the Make Work Pay tax credit for another year, and expanding financial aid for students through strengthened income-based repayment plans for student loans and an American Graduation Initiative to support community colleges and graduate five million students by 2020.

Additionally, the budget proposes to expand the Earned Income Tax Credit, reform asset limits in Federal means-tested programs, and take steps to reverse the system of upside-down wealth subsidies by revising mortgage interest deduction, charitable donations, and other itemized deductions.

For more information, reference President Obama’s budget request for FY2011.

See also, CFED’s Asset Building Policy Priorities for the 111th Congress.