In his state of the union address, President Obama laid out his vision for the tax code. Earlier in the day, in a speech to the Chamber of Commerce, Senate Finance Committee chair Orrin Hatch (R-UT) described his. They are not only on different planets. They inhabit different galaxies.
Obama wants to raise capital gains taxes on high-income investors, cap the size of tax-preferred retirement savings accounts, and impose a new tax on big banks. He’d use the money to create or expand tax subsidies or boost direct spending on families with kids, low-income workers, those who want to go to college, and those without access to job-based retirement savings.
Hatch isn’t having much of it. He wants to use tax reform to promote savings and investment. He rejects tax hikes on businesses. And he’s opposed to using the code to “pick winners and losers.”