WASHINGTON (AP) — Refusing to bow to the new Republican majority, President Barack Obama was urging Congress Tuesday night to raise taxes on the wealthy to pay for reductions for America’s middle class, part of a State of the Union package aimed at building on the nation’s recent economic growth.
Obama, in excerpts released ahead of his prime-time address, said it was time to “turn the page” on years of economic troubles, as well as an era of terrorism and war.
“It’s now up to us to choose who we want to be over the next 15 years, and for decades to come,” Obama said.
Obama was speaking to a Congress controlled by Republicans for the first time in his presidency. And the policies he was calling for suggested he had no plans to curtail his own agenda in favor of GOP priorities.
The president’s bread-and butter Democratic tax plan has drawn immediate scorn from Republicans. But Obama appeared content to instead set a tone for the 2016 presidential election and focus on a story of a U.S. economy now ready to move off austerity footing.
The verdict is clear. Middle class economics works. Expanding opportunity works. And these policies will continue to work, as long as politics don’t get in the way.
While the economy was expected to dominate the president’s address, he was also promoting his recent decision to normalize diplomatic relations with Cuba and to launch a military campaign against the Islamic State group in Iraq and Syria. In two potential areas of compromise with Republicans, he was to call on Congress to pass cybersecurity legislation and a new authorization for military action in the Middle East.
“I call on this Congress to show the world that we are united in this mission by passing a resolution to authorize the use of force against ISIL,” Obama said, referring to the Islamic State group.
The centerpiece of the president’s address was to be a tax proposal that could increase the capital gains rate on couples making more than $500,000 annually to 28 percent, require estates to pay capital gains taxes on securities at the time they’re inherited and slap a fee on the roughly 100 U.S. financial firms with assets of more than $50 billion.
