President Obama touts tax plan in 2015 State of the Union

President Obama made his second-to-last State of the Union address on Tuesday night — touting an improved economy and proposing policies, including free community college, which will face a tough road ahead in a Republican-controlled Congress.

Obama suggested a number of workplace reforms, such as equal pay, paid sick leave, free community college and tax reforms that seek to close corporate tax loopholes, raise taxes on the country’s top earners and tax inheritances.

UNC economics professor Patrick Conway said the idea of free community college, which sparked debate when Obama first announced it on Jan. 9, is a good move for the country economically because it leads to a more productive workforce and higher wages for the middle class.

“But politically, he’s throwing down a gauntlet,” he said. “And I don’t think it’s going to fly.”

Mitch Kokai, a policy analyst for the right-leaning John Locke Foundation, said the policy probably won’t make it through Congress as proposed.

“The president’s ‘free’ community college proposal is basically a gimmick,” Kokai said. “The president is saying that taxpayers should subsidize these community college students.”

Conway said the free community college proposal — which Obama said would come from revenue raised from taxes on richer Americans and taxing inheritances — was a way to make a point that the wealthy should bear more of the burden.

He also said putting a tax on inheritances is “double-taxation,” and is more of a political goal than an economic one.

“You’re taxing the (parents’) money when it’s first made, and then taxing it again when they give it to their kids,” Conway said.

Obama also said in the speech he wanted to close corporate tax loopholes and raise taxes on America’s top earners.

UNC Young Democrats President Tony Liu said he and the Young Democrats are excited to hear about Obama’s tax proposals.

“Income inequality is a destabilizing factor for long-standing prosperity and a healthy middle class,” he said.

But Frank Pray, the UNC College Republicans chairman, said the policies Obama advocated for would be detrimental to the economy.

“The College Republicans believe in equality under the law,” Pray said. “That includes the tax code.”

Kokai said Congress will undoubtedly pursue some sort of tax reform package, and that our current tax code is complicated, which retards economic growth.

Obama also implored Congress to authorize military action against ISIL and touched on recent protests in Ferguson, Mo. and New York, climate change, closing the prison in Guantanamo Bay and gay marriage.

Obama ended the address the way most presidents do — with an attempt to unite both sides of the political spectrum.

“A better politics is one where we debate without demonizing each other; where we talk issues, and values, and principles and facts,” Obama said.

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