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Obama Set To Propose Taxes On Capital Gains, Inheritance, And Wall Street

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It only took 5 years, but President Obama is finally set to offer some concrete proposals to deal with wealth inequality in America. Unfortunately, the proposals come as the Republicans have taken control of both chambers of Congress and Obama enters the twilight of his presidency.

President Obama is reported to be planning to announce an agenda that includes an increase in the taxes on capital gains, plutocratic inheritance, and Wall Street firms which will be used to facilitate tax cuts and credits for the middle class. With the start of the presidency of Ronald Reagan up until today taxes on capital, inheritance, and speculation have declined significantly, at one point the tax on inheritance – a.k.a the estate tax – went to zero.

Lowering those taxes, done at the behest of the wealthy, has led to a historically unequal America.

Senior White House officials say President Obama will use his state of the union to float several new economic ideas, including tax hikes on capital gains and wealthy inheritances, and new fees on the largest financial firms to pay for more middle class-friendly tax credits and cuts.

The price tag to the wealthiest Americans and those large financial institutions? According to senior White House officials it could be $320 billion over 10 years.The president will propose raising the capital gains rate to 28 percent, up from 15 percent, which is the maximum most taxpayers pay now.The president will also call for closing what the officials called “the single biggest loophole in our tax system today: … the trust fund loophole,” which allows portfolios and estates that increase in value to evade certain taxes when passed on to heirs.

Better late than never?

Though the likelihood of any of these proposals getting passed in the new Congress is next to nothing, the coherent agenda being laid out by the president could serve as a model for future Democratic presidents. As a parting shot it’s not bad, though it certainly would have been a more fruitful pursuit at the beginning of the administration rather than at the end.

CommunityThe Bullpen

Obama Set To Propose Taxes On Capital Gains, Inheritance, And Wall Street

{!hitembed ID=”hitembed_1″ width=”500″ height=”281″ align=”none” !}

It only took 5 years, but President Obama is finally set to offer some concrete proposals to deal with wealth inequality in America. Unfortunately, the proposals come as the Republicans have taken control of both chambers of Congress and Obama enters the twilight of his presidency.

President Obama is reported to be planning to announce an agenda that includes an increase in the taxes on capital gains, plutocratic inheritance, and Wall Street firms which will be used to facilitate tax cuts and credits for the middle class. With the start of the presidency of Ronald Reagan up until today taxes on capital, inheritance, and speculation have declined significantly, at one point the tax on inheritance – a.k.a the estate tax – went to zero.

Lowering those taxes, done at the behest of the wealthy, has led to a historically unequal America.

Senior White House officials say President Obama will use his state of the union to float several new economic ideas, including tax hikes on capital gains and wealthy inheritances, and new fees on the largest financial firms to pay for more middle class-friendly tax credits and cuts.

The price tag to the wealthiest Americans and those large financial institutions? According to senior White House officials it could be $320 billion over 10 years.The president will propose raising the capital gains rate to 28 percent, up from 15 percent, which is the maximum most taxpayers pay now.The president will also call for closing what the officials called “the single biggest loophole in our tax system today: … the trust fund loophole,” which allows portfolios and estates that increase in value to evade certain taxes when passed on to heirs.

Better late than never?

Though the likelihood of any of these proposals getting passed in the new Congress is next to nothing, the coherent agenda being laid out by the president could serve as a model for future Democratic presidents. As a parting shot it’s not bad, though it certainly would have been a more fruitful pursuit at the beginning of the administration rather than at the end.

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Dan Wright

Dan Wright

Daniel Wright is a longtime blogger and currently writes for Shadowproof. He lives in New Jersey, by choice.