President Obama is set to deliver his State of the Union speech on Tuesday in front of a Republican controlled Congress. White House officials reported on Saturday that the President will introduce a tax package calling for billions in tax raises on top earners in an attempt to fund new tax credits and other projects the White House claims will help the middle class. President Obama has been touting how he wants to revamp the tax codes and close loopholes in hopes of keeping the American economy growing, and help grow the middle class. In preparation for Obama’s second to last address, he has been traveling the country and unveiling White House proposals including free community college to qualified students, paid sick leave and improving online security following the Sony Pictures cyber-attack.
The Obama administration said that closing loopholes for the wealthy would generate revenue of $320 billion over 10 years; the new tax breaks that Obama plans to propose would cost $235 billion over 10 years. The-increased taxes would help to fund the free community college plan. The highlight of the president’s proposal is his increase on the capital gains and dividends for couples who make more than $500,000 per year to 28 percent.
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