Senator Orrin Hatch called out President Obama for starting “class warfare” with his proposal aimed at raising taxes for the wealthy in order to create and expand benefits for the middle class. Obama is set to outline his plan in tonight’s State of the Union address.
“This plan that we'll hear about tonight appears to be more about redistribution, with added complexity, and class warfare, directed at job-creating small businesses, than about tax reform, Hatch said in a speech to the Chamber of Commerce. “
Obama’s plan pushes to increase taxes on the wealthy by $320 billion over the next 10 years by closing the trust fund loophole and hitting banks with a liability fee. The money would go to increasing middle class benefits like tax breaks, and would in part cover his proposed community college program. The program would offer two years of community college to students for free.
Hatch, chairman of the Senate Finance Committee, said Obama’s proposal was “unfortunate, because we're going to need real leadership from the White House – not just liberal talking points – if tax reform is going to be successful.”
Hatch hoped that the Republican-controlled Congress could prevent Obama’s plan from passing, saying that the plan could be “particularly damaging, undoing tax policies that have been successful in helping to expand the economy, promote savings, and create jobs.”
Source: Reuters / Photo Credit: reuters.com