On Tuesday night at 9pm, Americans all around the nation will take a break from watching reruns of the Patriots and Colts game to hear President Obama’s first State of the Union Address of the year. In the address, Obama will outline his plans to raise taxes for wealthier Americans and banks in an attempt to help out the middle class. “This proposal is probably the most impactful way we can address the manifest unfairness in our tax system,” an administration official said. If the proposal makes it through congress, couples who generate over $500,000 per year will see their capital gains tax rise from 23.8 percent to 28 percent. The change would benefit nearly 13 million low-income workers by extending the earned income tax credits to families without children, while also tripling the maximum tax credits for child care in low-and middle-income homes.
Contributor: Phoebe Roe