Raising capital gains tax
As Obama continues to signal what he will propose during Tuesday’s State of the Union address, senior administration officials said during the weekend that he will call for raising the capital gains rate on top income earners and eliminating a tax break on inheritances. The revenue generated by those changes would fund new tax credits and other cost-saving measures for middle-class taxpayers, officials said.
Tax increases are rarely welcomed by congressional Republicans, who now hold majorities in the House and the Senate for the first time in Obama’s presidency. Obama’s tax proposals will likely be dismissed, if not outright ignored, by lawmakers outside the Democratic Party’s liberal base.
“Are they going to agree on everything? Absolutely not. I think we should have a debate in this country between middle class economics and trickle-down economics and see if we can come to an agreement on the things we do agree on,” White House senior adviser Dan Pfeiffer said Sunday on CBS’s “Face the Nation.” He said the theme of the speech would be “middle-class economics.”
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