In the State of the Union address, President Obama called for strengthening tax benefits for middle class and low-income working families, and for investing more in child care, early education, and higher education, including making the first two years of community college free.
He proposed to pay for these investments by:
- Eliminating the “stepped up basis” tax loophole that allows our capital gains to permanently escape any taxation if we pass them along to our heirs. It’s one thing for us not to pay tax because we haven’t sold the asset. But there’s no justification for also allowing heirs to sell the asset days after our death, paying no tax on the gain either.
- Raising the top tax rate on capital gains and dividends paid by couples making over $500,000 to 28% -- the same rate as under Ronald Reagan.
99 percent of the impact of the President’s tax reform proposal would be on the top 1 percent, and more than 80 percent would come from the top 0.1 percent (those with incomes over $2 million).
If your household income is $500,000 or above and you support the President’s proposal, please sign the open letter below that we will send to Congress and release to the press.
Responsible Wealth (a project of United for a Fair Economy) is gathering signatures on this letter with our partnerVoices for Progress. Voices for Progress and Responsible Wealth are uniquely positioned to make a difference in promoting a tax code that requires the top 1% to pay their fair share. Your voice and impact will be amplified when joined with others in each of our networks.