WASHINGTON (AP) — President Barack Obama is seeking an increase in taxes on the wealthiest Americans by raising the capital gains rate and eliminating a tax break on inheritances, then using the revenue to fund new tax credits and other cost-saving measures for the middle class.
The president's proposals are to be announced during Tuesday's State of the Union address. They are likely to be cheered by liberal Democrats and considered non-starters with the new Republican majority on Capitol Hill.
Senior administration officials are disclosing details of the tax proposals on the condition of anonymity because they are not authorized to discuss the proposals by name ahead of the president.
The proposal's centerpiece is an increase in the capital gains rate, to 28 percent, on couples making more than $500,000 per year.