Obama to propose tax increases on investments, inherited property

President Barack Obama will call on the new Republican-led Congress to raise taxes on investments and inherited property and to create or expand a range of tax breaks for middle-income families, laying out an opening position in a debate over taxation that both parties see as a potential area of compromise. Obama will outline the measures in his State of the Union address Tuesday night. He will propose using revenue generated from the tax increases—which would fall mainly on high-income households—to pay for a raft of new breaks aimed at boosting stagnant incomes for low- and middle-income households. Those initiatives include tripling the child-care tax credit and creating a new credit for families in which both spouses work, senior administration officials said on Saturday. <more>

Jan. 18, 2015 Money Watch