Debt because interest rates and penalties

President Obama and Vice President Biden claim they wish to help the middle class. They can do so by reinstating the tax deduction for credit card/short-term loan interest, reducing credit card interest rates and reducing interest and penalties for overdue taxes. They can stop the assault by banks and credit card companies who charge a $39 penalty for a $1 overdraft, $1 over limit or day late payment.

The middle class is wallowing in credit card debt as a result of legalized loan sharking. Members of the Mafia were sent to prison for this felony. Why are credit card, short-term loan companies and our own government allowed to pursue the same practices? Instead of having our legs broken, we lose our home, credit rating, reputation, job opportunities and sometimes our family. The IRS is guilty of using similar tactics when collecting overdue taxes. An acquaintance worked part-time last year making $10,000. She owed no income taxes; however, she did owe $1,200 for Social Security. She is paying the IRS $50 a month. Only $15 goes toward principal. The rest is interest and penalties. It will take her six years to pay off $1,200.

How can the financial wizards scratch their heads in puzzlement when the problem is obvious? The middle class cannot get out of debt (even if their jobs haven't been outsourced to another country or given to an illegal immigrant) because ridiculous interest rates and bank penalties are eating up their diminishing paychecks.

Karyl Bonnett

North Liberty