President Obama has been previewing his State of the Union address over the past few days. Reports are circulating that he will propose changes to capital gains and dividends rates. Additional changes include removal of the “Trust Fund Loophole.” A third proposal includes a fee on U.S. financial firms with assets of more than $50 billion.
The president’s tax proposal increases the capital gains and dividends rate on couples making more than $500,000 per year to 28 percent, the same level as under President Ronald Reagan.