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LIVE: Obama talks 2015 budget

The White House on Monday night touted middle-class tax breaks it is including in its 2015 budget proposal set for release on Tuesday.

The expanded tax breaks were mostly called for in President Obama’s State of the Union address last month, in which the president stressed combating income inequality as a top goal. 

The biggest is an expansion of the Earned Income Tax Credit used by lower-income workers, paid for by ending several tax breaks for more wealthy individuals. 
“The President’s budget will lay out the details of this proposal, which would cut taxes for 13.5 million working Americans, while also proposing to expand tax cuts to help middle-class and working families afford child care, send their kids to college and retire with dignity,” the White House said in a statement. 

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The White House said the new tax breaks will be paid for by eliminating a tax break used most often by Subchapter S Corporations to avoid the Medicare tax on earnings, and by closing the “carried interest” provision that allows private equity managers to pay a top rate of 23.8 percent on most of their earnings, rather than 39.6 percent. 

The budget will call on current levels of ETIC and the Child Tax Credit to be extended permanently. 

It will also expand the Child and Dependent Care Tax Credit, which the White House estimates will give 1.7 million families about $600 each.

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