This Tuesday, President Obama will address the public with his State of the Union speech, his first since elections in November. According to US officials, Obama plans on calling for tax increases on the wealthy in hopes that the middle class will feel the benefits of the growing economy.
Over the next decade, the proposal would raise $320 billion by closing loopholes, raising capital gains, and applying more fees on financial firms. This revenue would help fund benefits such as tripling child tax credits, getting help for families with two working spouses, and promoting extra incentives to save for retirement.
Obama administration fears that the proposal will receive resistance from Congress. Both the Senate and the House of Representatives are Republican-controlled after the November elections.
Since the 16th amendment was passed, the US government has been allowed to incite a graduated income tax, where the percentage of taxes paid increases depending on how much one makes each year. Based on what party controls Congress, and what party a majority of the upper class fall under, there is controversy over instilling a graduated income tax. I think that if a family can afford to give a larger percentage of their wealth to the government, why shouldn't they? Taxes are what fund our government, and in effect what fund our foundations and infrastructure. If everyone could contribute to the common good, wouldn't we all be happier?
Source: http://www.bbc.com/news/world-us-canada-30869190
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