The millennials seem like a neglected group, as far as politicians are concerned. Hillary wants to help working families, but lots of millennials are stuck in their parents’ basement without a job but with plenty of student loans. They won’t be helped by her. Here’s what a concerned politician could promote:
1. Lower the lowest tax rate from 10% to 2%. I’ve already talked about this many times before. A waiter or waitress making $20,000 would have paid $998 in taxes this past year, whereas I think $200 would be more appropriate. This would give them nearly $800 extra.
2. Raise the limit for the deduction on student loan interest. It is currently $2,500, a limit set in 2001 (I think). Make it unlimited.
3. Make sure there is no marriage penalty on the student loan interest deduction. The current limit is not per person, but per return, which means that if two millennials with student loans get married, one of them basically loses the right to take the deduction.
4. Make the student loan interest deduction into a refundable credit. A long time ago, it was an ordinary interest deduction that had to be listed on Schedule A, which meant that only those with lots of other things to deduct got to take advantage of it. Then it got turned into an adjustment, which helped former students since anyone could take it without needing lots of other deductions. But turning it into not just a credit, but a refundable credit, would mean that people like the millennials may get money back, even if their taxes are reduced to nothing.
5. Raise the limit on Earned Income Credit (EIC) for those without children. Millennials seldom have children, and so if they are single and make more than $14,820, they can’t take advantage of this great loophole (which is basically a negative income tax). Raise it to maybe $40,000.
6. Dump the Affordable Care Act. Even if the poorest of millennials get some kind of deal on this fiasco, those in the lower-middle class will probably get reamed by it, so it really needs to go. (See here for a chart in terms of the deciles of America. The lowest two deciles get money, but the third, fourth, and fifth lose more than anyone else.) Plus, it has forced some employers to reduce hours of their employees or lay them off. This isn’t a bit helpful to millennials.
There. These are the obvious suggestions that come to mind. Maybe there are more.