President Obama State of the Union: Tax Wealthy, Help Middle Class

(AP) — Refusing to bend to the new Republican Congress, President Barack Obama unveiled Tuesday night an ambitious State of the Union agenda steeped in Democratic priorities, including tax increases on the wealthy, education and child care help for the middle class and a torrent of veto threats for the GOP’s own plans.

“We can’t put the security of families at risk by taking away their health insurance or unraveling the new rules on Wall Street or refighting past battles on immigration when we’ve got a system to fix,” Obama said in his hour-long address. “And if a bill comes to my desk that tries to do any of these things, I will veto it.”

The president sought out more common ground on foreign policy, pledging to work with Congress on a new authorization for military action against the Islamic State group in Iraq and Syria, as well as legislation to guard against cyberattacks. In a rare move away from his own party, Obama also renewed his call for fast-tracking free trade agreements with Asia and Europe, generating more applause from pro-trade Republicans than skeptical Democrats.

The centerpiece of Obama’s economic proposals marked a shift away from the focus on austerity and deficit reduction that has dominated his fiscal fights with Republicans. In a direct challenge to GOP economic ideology, Obama called for increasing the capital gains rate on couples making more than $500,000 annually, to 28 percent.

The president’s tax plan would also require estates to pay capital gains taxes on securities at the time they’re inherited and slap a fee on the roughly 100 U.S. financial firms with assets of more than $50 billion.

Much of the $320 billion in new taxes and fees would be used for measures aimed at helping the middle class, including a $500 tax credit for some families with two spouses working, expansion of the child care tax credit and a $60 billion program to make community college free. He also has called for expanding paid leave for workers and moved on his own to lower a mortgage insurance premium rate that could attract new homebuyers.

“We see our neighbors agonize over stagnant wages and lost jobs. We see the hurt caused by canceled health care plans and higher monthly insurance bills,” said Iowa Sen. Joni Ernst, who delivered the Republican response.

With an eye on a swirl of foreign policy challenges, Obama defended his decision to return to military action in Iraq and also authorize airstrikes in Syria. He said Congress could “show the world that we are united in this mission” by passing a new resolution formally authorizing the use of force against the Islamic State group.

Obama appeared at ease throughout the address, adlibbing at times and responding to the audience reaction. As he neared the end of his speech, he declared, “I have no more campaigns to run.” As Republicans erupted in laughter, Obama retorted, “I know, because I won both of them.”