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Obama wants higher taxes on rich, incentives for jobs

State of the Union

THIS STORY APPEARED IN

January 25, 2012|By Tracy Jan

In the State of the Union last night, President Obama called for a halt to… (Saul Loeb/Associated Press )

WASHINGTON - President Obama pledged last night to use the transformative role of government to rescue the middle class and restore tax fairness, calling on Congress to be a partner in easing economic anxieties.

In an assertive, expansive State of the Union address, the president proposed that the richest Americans - earners of more than $1 million a year - be made to pay at least 30 percent in taxes. The proposal creates a stark contrast to those Republicans seeking to replace him by pitching less government and more tax cuts.

“We need to change our tax code so that people like me, and an awful lot of members of Congress, pay our fair share of taxes,’’ Obama said. “Washington should stop subsidizing millionaires. In fact, if you’re earning a million dollars a year, you shouldn’t get special tax subsidies or deductions.’’

The tax proposal was one of several challenges the president, in his third State of the Union, put forth to a bitterly divided Congress in an election year. Those challenges included calls for incentives to expand clean energy, help homeowners take advantage of historically low interest rates, and rebuild the country’s infrastructure.

Making a plaintive request for both parties and government branches to work together, Obama evoked the mission of the Navy Seals team who, together and regardless of their individual beliefs, hunted down Osama bin Laden.

“All that mattered that day was the mission,’’ Obama said. “No one thought about politics. No one thought about themselves.’’

The 30 percent minimum tax idea, however, stands little chance of action this year. Instead, it’s likely to form one of the key planks for his reelection bid. Not only does it fundamentally set Obama apart from the Republican field, it puts him in the middle of a roiling national debate over wealth and power inequalities.

Hours earlier, GOP contender Mitt Romney released his 2010 federal income taxes, showing he paid only about 14 percent on about $21 million in income, mostly investments. The rate is lower than that of many middle-income wage-earners.

Those Americans were the intended recipients of Obama’s pitch.

“You’re the ones struggling with rising costs and stagnant wages. You’re the ones who need relief,’’ said the president. He then alluded to what has become known as the “Buffett Rule.’’

“Now, you can call this class warfare all you want. But asking a billionaire to pay at least as much as his secretary in taxes? Most Americans would call that common sense.’’