Obama proposes middle class tax cuts.
Democratic senator and presidential hopeful, Barack Obama, today announced plans to increase the capital gains tax and dividend taxes in an effort to alleviate the tax burden on the middle class. Obama noted in a speech today that “We need a tax code that’s fair — a tax code that rewards work and advances opportunity.” Senator Obama’s plan is based on the notion that the majority of the income strata should hold the most capital, allowing surpluses to “bubble-up” to the highest tiers of the economy. The current tax system places capital at the apex of the income brackets, allowing surpluses and other potentials to “trickle down” to average wage earners.
Obama, who is trailing in recent polls against Senator Hillary Clinton, announced his plan as demographic studies suggest the economy is a top concern among likely voters. This comes as the Federal Reserve lowered short-term interest rates by 50 basis points, sparking the largest single day returns on investment markets in four years.