President Obama plans to call for billions in tax increases on p earners -including a hike in investment tax rates with an eye to fund new tax credits and other measures the White House claims will help the middle class.
The president’s proposals, which also include eliminating a tax break on inheritances, are likely to be cheered by the Democratic Party’s liberal base when they are announced Tuesday night in his Union State address. The tax increases are all but certain to be nonstarters with the new Republican majority on Capitol Hill.
The president’s address his first to a Republican led Congress will call for per year to 28 percent, the same level as under President Ronald Reagan. The p capital gains rate has already been raised from 15 percent to 238 percent during Obama’s presidency.
Obama also wants to close what the administration is calling the Trust Fund Loophole, a change that would require estates to pay capital gains taxes on securities at the time they’re inherited.
Officials said the change overwhelming impact would be on the p 1 income percent earners. The party has opposed lots of the proposals the president will outline Tuesday, while GOP leaders have said they share Obama’s desire to reform the nation’s complicated tax code. Consequently, most Republicans want to lower or eliminate the capital gains tax and similarly want to end taxes on estates, not expand them.
Administration officials pointed to a third proposal from the president as one they hope Republicans would support.
Camp’s plan, however, was part of a larger proposal to lower the overall corporate income tax rate. Dave Camp of Michigan, who led the tax writing Ways and Means Committee. Whenever ending the inheritance loophole and tacking a fee on financial firms would generate