The following is a summation of President Obama's tax code proposals
as well as a PDF fact sheet, both as provided by the White House.…
Saturday evening, President Obama dropped a policy bombshell on repugicans and the nation,
introducing a tax proposal that targets the rich to pay their fair
share. The following is a summation of President Obama’s tax code
proposals as well as a PDF fact sheet, both as provided to the press by
the White House.
FACT SHEET: A Simpler, Fairer Tax Code That Responsibly Invests in Middle Class Families
In the lead up to the State of the Union address,
the President has put forward proposals to help strengthen the middle
class and build on the progress we have made to create good jobs and
grow our economy. From proposing to make community college free for
every responsible student and extending sick leave to working families,
to acting on his own to cut mortgage premiums by $900 for families
looking to buy a home, the President has already taken steps to ensure
that all Americans can share in the benefits of our economic recovery.
Over the past six years, we’ve rescued and begun to
rebuild our economy on a new foundation. Now we have to build on this
progress, to raise wages and incomes, and strengthen the standing of
working families in a new economy. On Tuesday, the President will lay
out his vision for how to do that. A key part of that vision will
include a new strategy to simplify our complex tax code, make it fairer
by eliminating some of the biggest loopholes, and use the savings to
responsibly pay for the investments we need to help middle class
families get ahead and grow the economy.
The President’s plan will eliminate the biggest
loopholes that let the wealthiest and big corporations avoid paying
their fair share of taxes:
Closing One of the Biggest Tax Loopholes – the Trust
Fund Loophole: The President will propose to close the single largest
capital gains loophole, which lets hundreds of billions of dollars
escape taxation each year, to ensure the wealthiest Americans pay their
fair share on inherited assets.
Raising the Total Top Capital Gains and Dividends
Rate Back to the Level Under President Reagan: The President will
propose to raise the top capital gains rate to 28 percent – the rate
under President Reagan.
Making the Biggest Financial Firms Pay Their Fair
Share: The President will continue to reform the way the largest
financial firms do business by proposing a fee on the biggest financial
firms, making it more costly for them to borrow heavily.
The President proposes to use the savings produced
by these measures to reinvest in the middle class, helping millions of
families each year and strengthening their standing in the 21st century
economy:
Helping Working Families: The President will lay out
a new $500 second earner credit to help cover the additional costs
faced by families where both spouses work – benefiting 24 million
couples.
Tripling the Child Care Tax Credit: The President’s
proposal would streamline and dramatically expand child care tax
benefits, providing up to $3,000 per child under 5, and helping 5.1
million families cover child care costs for 6.7 million children.
Making College Accessible and Affordable: The
President’s plan reforms the education tax system by consolidating six
overlapping education provisions into just two and providing students up
to $2,500 a year toward completing a college degree. His plan cuts
taxes for 8.5 million families and students and simplifies taxes for the
more than 25 million families and students that claim education tax
benefits. The President has also proposed to make the first two years of
community college free to any hardworking student.
Saving for Retirement: The President’s plan makes it
easy and automatic for workers to save for retirement – giving 30
million more workers the opportunity to easily save for retirement
through their employer.
The President’s proposals to take these and other
steps to make the tax system more fair will also finance the his plan to
make community college free for responsible students and additional
investments in improving child care quality, access, and affordability
for working families.
End White House fact sheet.
Read the full FactSheet
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