Obama To Address Income Inequality

President Obama will shortly be delivering his last State of the Union address before the presidential elections. It is learnt that the main theme of his speech will be how to address the problem of “income inequality”.

Tax reforms which target the wealthy would naturally go down well in an election year. So the President would propose that rich Americans pay more tax and allow the cuts, brought in by George Bush in 2001 and 2003, to expire. In particular the proposal first mooted by billionaire investor Warren Buffet that those earning more than $1 million should pay tax at a higher rate would find a place in the President’s speech. He would also give tax incentives to industry to hire more people besides help homeowners who are unable to pay back their home loans.

Democrats feel that the President would give the blueprint for an economy which will spur industrial growth and create jobs. Republicans feel that there is little that is new in the President’s proposals.

Democratic sources say that Obama would seek to reassure middle class America while reaffirming his commitment to the basic American values of equal opportunities for all and hard work and responsible conduct is rewarded.

Of course, the final word would be known only in November when America votes and either re-elects Obama or favors his Republican opponent.
Credit: getty images

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Posted by Valerie Ryder on Jan 24 2012. Filed under National. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.