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Tax Proposals in the State of the Union

By: Joseph Bishop-Henchman

Erick Erickson of RedState put together this list of tax-related phrases from last night’s State of the Union address:

TaxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. Increases

  • “I have proposed a fee on the biggest banks.”

  • “finally slash the tax breaks for companies that ship our jobs overseas”

  • “But at a time of record deficits, we will not continue tax cuts for oil companies, investment fund managers, and those making over $250,000 a year.”

Tax Cuts With Strings – Targeted, Not broad-based cuts:

  • “new small business tax creditA tax credit is a provision that reduces a taxpayer’s final tax bill, dollar-for-dollar. A tax credit differs from deductions and exemptions, which reduce taxable income, rather than the taxpayer’s tax bill directly.

  • “eliminate all capital gains taxA capital gains tax is levied on the profit made from selling an asset and is often in addition to corporate income taxes, frequently resulting in double taxation. Capital gains taxes create a bias against saving, leading to a lower level of national income by encouraging present consumption over investment. es on small business investment”

  • “provide a tax incentive for all businesses, large and small, to invest in new plants and equipment”

  • “give rebates to Americans who make their homes more energy efficient”

  • “give those tax breaks to companies that create jobs in the United States of America”

  • “That’s why we’re nearly doubling the child care tax credit”

  • “expanding the tax credit for those who start a nest egg”

  • “give families a $10,000 tax credit for four years of college and increase Pell Grants”

  • “we will extend our middle-class tax cuts”