President Obama will propose $320 billion in new tax increases over ten years during his seventh State of the Union address on Tuesday night. After historic Republican victories during the 2014 midterm elections, which gave Republicans the largest majority in the House in decades and a majority in the Senate for the first time since Obama became president, Obama is set to reject those results and charge full steam ahead with his one-sided liberal agenda.
Americans for Tax Reform, an organization which pressures elected officials not to raise taxes, highlights the five major tax hikes Obama will propose tomorrow night:
1. Capital Gains Rate Hike: raises capital gains and dividends tax rate from 23.8% today (20% plus 3.8% Obamacare surtax) to 28% (including the Obamacare surtax).
The capital gains tax has not been that high since President Clinton signed a rate cut in 1997.
It would represent a massive hike in the rate since Obama took office. When he was sworn in, the rate was 15%. He proposes to nearly double it to 28% in the twilight of his administration.
2. Stealth increase in the death tax rate from 40% to nearly 60%.
Under current law, when you inherit an asset your basis in the asset is the higher of the fair market value at the time of death or the decedent’s original basis. Almost always, the fair market value is higher.
Under the Obama proposal, when you inherit an asset your basis will simply be the decedent’s original basis.