The Federal Tax Credits Blog

Question: Can someone explain Obama’s American Opportunity Tax Credit?

I am not sure if I completely understand it, so please correct me if I am wrong.

Obama states that he will make the first $4,000 of higher education free for Americans in exchange for a 100 hours of community service and that this will be eligible per year/ per student. I am not sure if this only applies to public universities and not private education.

While I think the idea behind it is good, I am concerned where the funding will come from. According to US Census Data, there were 17.2 million people enrolled in higher education in 2006. Funding this program would have the potential of costing $69 Billion per year plus any other additional bureaucratic costs (this is the highest estimate and includes private universities). Where will this money come from?

I support investing into higher education, but if I am understanding this correctly, then I am not sold upon its practicality.

Answer: When you figure out where he plans on getting all the money for that, then maybe you can work on figuring out where he is getting all the money for all his other big plans. Every plan he has is going to cost BIG bucks. Maybe he thinks once he is President he can spend the way he has been in his campaign, on somebody elses wallet. I don’t think he even knows all his plans are IMPOSSIBLE!
Oh, and be sure to let the rest of us know.

Obama considers tax code overhaul

President Obama is considering a call early next year for an overhaul of the income tax code to lower rates and raise revenues in what would be his first major effort to begin addressing the long-term growth of the national debt, advisers said yesterday.

Mary J. Blige – It’s A Wrap (Credit Edit)

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