American President Barrack Obama wants tax rise on wealthy group. He wants this to help middle income grouped people and to raise funds that would be used for different state’s purpose.
Why Obama wants tax rise on wealthy:
It is not the first time that president Obama opens his thinking of raising tax on wealthy group. He made similar comments on this before. But why he wants to raise the tax slab? It is the main point of discussion now in whole America.
According to the officials of White House, Obama wanted it to be implemented far before he made it public.
What the points are:
- Obama wants to raise the capital gain tax to 28% from 23.8%
- This law will be applicable on the firms having more than 50 billion assets.
The possible reasons behind of his this decision may be:
- To close the loopholes that are still allowing American top earners to pass some assets that are tax free.
- To accumulate more fund for state’s social programs.
What are the problems:
Here is the main twist. Obama can’t implement what he wants without proper permissions of American Senate. But unfortunately in the both houses Republicans are the majority. So they will oppose it for sure.
Now it’s solely depends on the President how he convince the republicans in the houses to pass the bill.
“Slapping American small businesses, savers, and investors with more tax hikes only negates the benefits of the tax policies that have been successful in helping to expand the economy, promote savings, and create jobs,” Senate Finance Committee Chairman Orrin G Hatch said.