Monday, January 19, 2015

Obama Seeks To Raise Taxes On the Wealthy

Following recent moves on immigration, Cuba, tuition-free community college and possibly vetoing the Keystone Pipeline, President Obama is taking his next step in his determination to, as he told Senate Democrats, "play offense." In his State of the Union address, Obama plans to call on Congress to raise taxes on the wealthy to finance tax cuts for the middle class:

President Obama will use his State of the Union address to call on Congress to raise taxes and fees on the wealthiest taxpayers and the largest financial firms to finance an array of tax cuts for the middle class, pressing to reshape the tax code to help working families, administration officials said on Saturday.

The proposal faces long odds in the Republican-controlled Congress, led by lawmakers who have long opposed raising taxes and who argue that doing so would hamper economic growth at a time the country cannot afford it. And it was quickly dismissed by leading Republicans as a nonstarter.

...The president’s plan would raise $320 billion over the next decade, while adding new provisions cutting taxes by $175 billion over the same period. The revenue generated would also cover an initiative Mr. Obama announced this month, offering some students two years of tuition-free community college, which the White House has said would cost $60 billion over 10 years.

The centerpiece of the plan, described by administration officials on the condition of anonymity ahead of the president’s speech, would eliminate what Mr. Obama’s advisers call the “trust-fund loophole,” a provision governing inherited assets that shields hundreds of billions of dollars from taxation each year. The plan would also increase the top capital-gains tax rate, to 28 percent from 23.8 percent, for couples with incomes above $500,000 annually.

Those changes and a new fee on banks with assets over $50 billion would be used to finance a set of tax breaks for middle-income earners, including a $500 credit for families in which both spouses work; increased child care and education credits; and incentives to save for retirement.

AP Photo


Jon Rector, editor of The Piglet Parade said...

It's about time Obama started playing offense. This is something he should have been doing for the last six years, especially after McConnell stated the only plan the GOP had was to destroy this presidency.

Oh yeah, hi Jeff. I hope all is well for you in this new year.


Jeff Tone said...

I believe that the election freed Obama from having to protect the timid Democrats. Not having to run for office again helps, too. In addition, he finally learned that the Republicans have no interest in compromise.

Good to hear from you, Jon! Happy new year!