MercoPress, en Español

Montevideo, December 1st 2022 - 19:57 UTC

 

 

Obama wants tax increases on the wealthy to help middle class families

Monday, January 19th 2015 - 07:19 UTC
Full article 4 comments
Details of his proposal should be known on Tuesday when Obama addresses for the first time a full Congress under Republican control Details of his proposal should be known on Tuesday when Obama addresses for the first time a full Congress under Republican control
More tax hikes 'only negate benefits of tax policies that have been successful in helping expand the economy' warned Senator Orrin G Hatch More tax hikes 'only negate benefits of tax policies that have been successful in helping expand the economy' warned Senator Orrin G Hatch

President Obama is to use Tuesday's State of the Union speech to call for tax increases on the wealthy to help the middle class, officials say. The proposals would raise 320 billion dollars over a decade, to fund benefits such as tax credits.

 The speech is the centerpiece of the US political diary and may shape both president Obama's legacy and the 2016 election. But the president faces resistance to his proposals, with Republicans controlling both Houses of Congress.

With the US economy growing, President Obama will stress that it is time for ordinary US families to feel the benefits.

According to US officials the plans include: Closing a loophole allowing the wealthiest Americans to pass on certain assets tax free; Raising capital gains tax on the richest earners from 23.8% to 28%; new fees on US financial firms with more than $50 billion in assets.

The revenues would raise more than enough to fund the proposed benefits for the middle class, according to the officials. These include tripling child tax credits, help for families with two working spouses and extra incentives to save for retirement.

The speech is also set to include a plan to expanding free community college education and proposals on cyber-security.

The State of the Union speech will be President Obama's first since the Republicans seized control of the two Houses of Congress at elections last November.

His proposals have already been dismissed by some in the party.

“Slapping American small businesses, savers, and investors with more tax hikes only negates the benefits of the tax policies that have been successful in helping to expand the economy, promote savings, and create jobs,” Senate Finance Committee Chairman Orrin G Hatch said.

Administration officials hope to find some common ground with their opponents.

They also say the increase in capitals gains taxes, likely to be resisted by many Republicans, returns the rate to what it was under President Ronald Reagan in the 1980s.

The New York Times said the decision to present the tax plan during Tuesday's speech marked the start of a debate over taxes and the economy that will shape both the president's legacy and the 2016 presidential campaign.

The speech is also set to include a plan to expanding free community college education and proposals on cyber-security. The State of the Union speech will be President Obama's first since the Republicans seized control of the two Houses of Congress at elections last November.

Categories: Economy, Politics, United States.

Top Comments

Disclaimer & comment rules
  • ChrisR

    I don't think his speech will go down too well!

    Jan 19th, 2015 - 07:24 pm 0
  • Enrique Massot

    This is a pinko plot:
    “...the increase in capitals gains taxes, likely to be resisted by many Republicans, returns the rate to what it was under President Ronald Reagan in the 1980s.”
    How naive I was. So many years later I discover Ronald Reagan was a socialist in disguise!
    Or has greedy capitalism been growing increasingly its share of the pie through the years?

    Jan 20th, 2015 - 02:20 am 0
  • Hepatia

    I think Orin Hatch needs to identify which period of recent US history he is referring to when he says, “Slapping American small businesses, savers, and investors with more tax hikes only negates the benefits of the tax policies that have been successful in helping to expand the economy, promote savings, and create jobs.”

    Jan 20th, 2015 - 02:29 am 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!