President Barack Obama during his State of the Union address called for increasing taxes on investment fund managers, oil companies and those making more than $250,000 a year.
Mr. Obama also called for a fee on Wall Street banks that received federal bailout money, but did not provide any details.
“I know Wall Street isn't keen on this idea, but if these firms can afford to hand out big bonuses again, they can afford a modest fee to pay back the taxpayers who rescued them in their time of need,” he said.
He said the freeze on federal spending he proposed for 2011 would not affect Social Security.
He said the country needs “serious financial reform” and that the country must “guard against the recklessness that nearly brought down our entire economy.”
A small-business tax credit would go to 1 million businesses that hire new workers or raise wages. The proposal also would eliminate capital gains taxes for investment in small business and tax incentives for all businesses that purchase new plants and equipment.
Mr. Obama also said he would end tax breaks for companies that send jobs overseas and provide them for companies that create jobs in the U.S.