By Uzo Nnabuihe, Fox 5 News Intern

Democratic presidential candidate Barack Obama plans to exempt senior citizens making less than $50,000 a year from paying income taxes. The Obama campaign says the idea would give tax cuts averaging $1400 to about seven million seniors who are struggling with inflation and trying to make ends meet on a fixed income. The campaign also says the plan would relieve millions of older people from having to file complicated tax returns.

According to Obama’s campaign, the plan is a way to give back to seniors who have worked hard and paid into the system, but not everyone agrees with them. Tax policy experts see it as another subsidy for senior citizens who already get federal help through the Social Security pension plan and Medicare. They argue that most senior citizens have typically paid off most of their debts, have no dependents and don’t pay payroll taxes because their income is from investments rather than wages.

Tax experts also fault the $50,000 a year threshold. They say people earning slightly more than $50,000 could pay thousands more in taxes, than their counterparts making less. Seniors nearing the $50,000 mark would have incentive to quit working in order to remain in that tax bracket.