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The Nation : Tax Aid for Middle Class?

The Reagan Administration said it is considering changes in its tax reform plan to provide more help to the middle class. White House spokesman Larry Speakes said the Treasury Department is reexamining the proposal with an eye toward changing its treatment of child care expenses and the so-called marriage-penalty deduction. President Reagan’s proposal currently calls for eliminating the marriage-penalty deduction and replacing the child-care credit with a deduction, which would be less valuable to middle-income families. A credit is subtracted from the tax owed, while a deduction reduces the amount of income used for computing taxes.


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