WASHINGTON (Jan. 20, 2015) — In his State of the Union address tonight, President Barack Obama will call for an estimated $320 billion in new or increased taxes on high-income households over the next 10 years to fund programs designed to help middle- and working-class families, according to various news reports.
Among the tax hikes President Obama is expected to propose are an increase in the capital gains tax to 28 percent from the current 23.8 percent on couples earning more than $500,000 a year. Another is a change in inheritance taxes to require estates to pay capital gains taxes on securities at the time they are inherited.
President Obama also will propose a requirement that businesses without 401(k) plans must make it easier for workers to contribute to individual retirement accounts. He will propose tax credits for small employers to defray the cost of this requirement.
In advance of the speech, Thomas Donohue, president and CEO of the U.S. Chamber of Commerce, released a statement saying that the Obama administration should create measures to help business, rather than raise taxes.
“We already have real economic populism in this country, and I'll tell you what it is,” Mr. Donahue said. “It's 28 million businesses of every conceivable size and endeavor that have sprung to life in every town, city and community.
“We must reject trickle-down government and support, expand and celebrate the entrepreneurial spirit, and make sure it thrives,” he said.