At a glance
Highlights of President Obama’s tax proposals:
The White House says President Barack Obama will propose in his State of the Union address a plan to impose higher taxes on the wealthy and use the revenue to help middle-class families.
• Eliminate a tax break on inheritances. The White House says the provision costs the government hundreds of billions of dollars in annual tax revenue.
• Increase the total top capital gains rate on couples with incomes above $500,000 to 28 percent, what it was under President Ronald Reagan. The top capital gains rate has already been raised from 15 percent to 23.8 percent during Obama’s presidency.
• Impose a fee on big financial firms, those with assets of more than $50 billion.
How the money would be spent
• A new $500 “second earner” tax credit for families where both spouses work. An estimated 24 million couples would benefit; the credit would apply to families with annual income up to $210,000.