State of the Union Address: Obama Wants to Raise Taxes on Wealthy to Finance Tax Credits

President Obama wants to increase taxes on top earners which will include investment tax rates so that the government can fund new tax credits and other measures that he thinks will help the middle class. Included in his proposal is the removal of tax break on inheritances.

He will have a hard time with this since the Republican-controlled Congress are opposed to any tax raise since they claim that any tax increase will negatively affects economic growth at a time the U.S. cannot afford it.

Whitehouse believes that the new tax raise if implemented would raise $320 billion over the next decade, while adding new provisions cutting taxes by $175 billion over the same period. It will also fund the free community college for 2 years that is expected to cost $60 billion over 10 years.

Obama wants to end the “trust-fund loophole” on inheritances that save billions of dollars from taxation yearly. This will require estates to pay capital gains taxes on securities at the time they're inherited. It would also raise the top capital-gains tax rate to 28% (from 23.8%) for family with an annual income of above $500,000.  Banks with assets over $50 billion will be taxed and the fund will be used to finance tax incentives for middle-income earners, which includes $500 credit for families in which both spouses work, additional child care and education credits and incentives to save for retirement.

Republican leaders said they also wanted to reform the country's complicated tax code, however they don't agree with most of the proposals the president will outline on Tuesday. For example, most Republicans want to lower or eliminate the capital gains tax and similarly want to end taxes on estates, not expand them.

Republicans support the fee on the banks with more than $50 billion assets. This new fee is the same proposal from former Republican Rep. Dave Camp of Michigan, who led the tax-writing Ways and Means Committee. Camp's plan, however, was part of a larger proposal to lower the overall corporate income tax rate.

If it would help the working middle-class and not the lazy-class, I'm all for it. 

Jean Yang Executive Director Of MA Health Connector Quits

Jean Yang the Executive Director of the Massachusetts Health Connector quits after a very difficult year in which the state's health care exchange failed in spectacular fashion and fall far behind the federal site when in comes to fixing the problem. Her departure was expected since there is a new Republican governor, Charlie Baker, who is about to take office.

The problems in the connector's website impaired the process of transition from Massachusetts’(1st in the US) universal healthcare insurance law to the requirements of the Affordable Care Act, that left hundreds of thousands of people in the temporary Medicaid coverage.

Maydad Cohen, will took office as interim executive director until the Baker administration appoints a successor.

HAPPY PROSPEROUS NEW YEAR 2015

I wish all of you
A Joyful Beginning Of The Year
And More Blessings Throughout
And End With Love 

Happy New Year

Merry Christmas! 2014

May this Christmas
Brings good health, wealth and peace to you home
And make your Christmas a fun filed Celebration
Merry Christmas and Happy new Year!

New York bans fracking Due to Health Risks

Governor Andrew Cuomo's administration made public on Wednesday that New York will be imposing a state-wide ban on hydraulic fracturing, because of numerous potential health risks.

According to New York Environmental Commissioner Joseph Martens he will be issuing an order early 2015 that will ban fracking, which has been under a moratorium since 2008. Currently, only one state bans fracking which is Vermont.

Fracking is a process of pumping water, sand and chemicals into a well to extract oil or gas. Some states say that fracking is a key economic resource while others said it was too dangerous both to environment and health of the people living nearby.

Howard Zucker New York health commissioner said, "The potential risks are too great, in fact not even fully known, and relying on the limited data presently available would be negligent on my part."

New York is located on top of a portion of the Marcellus shale, one of the largest natural gas deposits in the United States.

Obama Asks Senate to approve $1.1 trillion spending bill

President Barrack Obama asked the Senate to approve the $1.1 trillion spending bill, there are legislators from different camps objects the bill and there are even angry Democrats who said that it was a compromise that resulted from the divided government that the American people voted for.

Senate Majority Leader Harry Reid (D-Nev.) said that the bill is a compromise, and there are colleagues that are not happy with it and they will have a chance to make their objections heard. He added that the senators would vote on the final deal Monday. The bill will continue funding the government up to September 2015, Homeland Security agency is not included since it is funded until February 27.

Fox News Sean Hannity was livid about the passing of this bill he is particulary mad at House Speaker John Boehner's (R-Ohio) for his support of this bill.

Hannity said: "This measure did not sit well with a number of conservatives, including me." "$ 2.5 billion for illegal immigrants and Obamacare is funded through the fiscal year, that's a conservative speaker? I don't think so. It's a sad day that John Boehner doesn't realize that there was an election. The people have spoken ... John Boehner has disrespected all the people who voted for all those Republicans tonight."

He even relate Jonathan Gruber (Obamacare consultant who said the American voters are stupid) to Boehner, "John 'Gruber' Boehner ...  John Boehner 'Grubered' conservatives tonight. And by that I mean the conservative base in particular." " We've got our own Gruber. It's John Boehner. Boehner is Gruber. He's full of it."

Republicans will take control of the Senate next month.

U.S. Economy Added 321,000 jobs in November

Employment numbers are stronger than expected in November as the U.S. economy created 321,000 jobs. Experts and economist was expecting 230,000 increase. The U.S. Labor Department said in a report Friday that businesses have added 321,000 jobs in November. This is the biggest hiring increase in nearly 3 years.

However the unemployment rate was unchanged at 5.8%, and the people who are unemployed is now at 9.1 million. The people who are unemployed for 27 weeks or more in November is at 2.8 million.

November is the 10th month that the economy has added 200,000 jobs, but it must add at least 250,000 jobs on average monthly to keep pace with population.

The bad news is, 6.9 million people who are working are employed part-time since they cannot find full-time job.