Obama State of the Union Address 2015 Details: Obama To Propose New Taxes For Rich To Aid Middle Class

U.S. President Obama is set to promote his proposed reforms to tax the wealthy more in order to pay for cuts for the middle class on his forthcoming State of the Union Address amid criticisms from the Republicans.

Obama's measures, seen to bring in $320 billion to state coffers over a period of 10 years, include new taxes on America's wealthiest that will put a cap on their profits from investments and make it more difficult for them to pass assets to scions.

Much of the proceeds will be used to expand tax credits for higher education and child care and create a new break for two-earner couples.

"The President's tax proposals focus right where we need to -- creating opportunity for middle class families," said Sander Levin, the top Democratic tax writer in the House of Representatives, as reported by Reuters.

"What you're seeing here is really dedicated middle-class tax relief to really get at that problem of middle-class wage stagnation," said Harry Stein, director of fiscal policy at the Center for American Progress, as quoted by Bloomberg.

Republicans, however, slammed the proposal, which is seen as a move to help Obama's Democratic Party retain their control over the White House in next year's polls. The proposal was released late Saturday by the White House.

"Slapping American small businesses, savers and investors with more tax hikes only negates the benefits of the tax policies that have been successful in helping to expand the economy, promote savings, and create jobs," said Republican Orrin Hatch, chairman of the Senate Finance Committee, as quoted by Bloomberg. "The president needs to stop listening to his liberal allies who want to raise taxes at all costs and start working with Congress to fix our broken tax code."

Another Republican, Florida GOP Sen. Marco Rubio was quoted by Fox News as saying: "The notion ... that in order for some people to do better, someone has to do worse is just not true. Raising taxes on people that are successful is not going to make people that are struggling more successful. ... It would also be counter-productive."

In his last two years in office, Obama intends to raise the top tax rate on capital gains and dividends to 28 percent from the current 23.8 percent.

The said tax was just 15 percent when Obama became president in 2009, Bloomberg reported.

Obama also proposed to end what the White House said is "the largest capital gains loophole" by imposing capital-gains levies on asset transfers at death. At present, heirs only have to pay such when they sell the assets and only when the assets are sold on a value higher than what they were worth at death.

Aside from the tax reforms, Obama is also pushing for legislation that will allow workers to earn seven days of paid sick leave per year.

He also wants a measure that will make the first two years of community college free. Students can also avail up to $2,500 a year toward completing a college degree, according to Forbes.

The President also wants firms to automatically sign workers into individual retirement accounts.

Obama's plan also showcase a $500 tax credit for married couples when both spouses work. The full credit will be given to couples earning up to $120,000 while a partial credit will be for those with incomes up to $210,000.

The President also wants to triple the child care tax credit to up to $3,000 per child under 5.