The squeezing of the middle class has long been an issue in the US with President Barack Obama using his State of the Union address to talk about how he intends to improve the lives of the middle class through taxing big business. While many may be happy with the changes, others are not and now the president has been accused of undertaking “class warfare” by the Senate’s top law writer.
Plans to help the middle class by taxing the wealthiest citizens in America may sound to be a fair plan but according to a report by Reuters, Republican Senator Orrin Hatch, chairman of the Senate Finance Committee, said the proposals Obama is to set out in his State of the Union address would violate principles of simplicity and “revenue neutrality” that Hatch said are key to any real tax reform.
“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 remarks prepared for delivery in a speech to the U.S. Chamber of Commerce.
He added in the report by Reuters: “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.”
President Obama intends to push through a plan to increase taxes by $320 billion over 10 years and he plans to do this by targeting the wealthy in the country by closing tax loopholes and imposing a fee on big financial firms. The money would be used to pay for an increase in benefits for the middle class.
According to Reuters, Obama’s aim is to help those left behind by an economic revival taking hold six years into his tenure, which began with the president facing a crippling financial crisis. The plan would need approval from Congress, which is controlled in both chambers by Republicans.
But according to Hatch, the move would “be particularly damaging, undoing tax policies that have been successful in helping to expand the economy, promote savings, and create jobs.”
According to Reuters, Hatch said he was talking to Senate Democrats as well as lawmakers in the House of Representatives with the goal of introducing a bipartisan, bicameral bill on Trade Promotion Authority (TPA).
“My plan, therefore, is to move carefully but quickly to mark up (vote in committee on) a TPA bill,” he said. Hatch did not give a time frame but said he wanted to introduce a bill “that we can move in short order.”