Obama State of the Union Calls for Refinancing Aid, Tax Reform

 

Last night, in his State of the Union address, President Obama called for a loan refinancing program he said would give “every responsible homeowner the chance to save about $3,000 a year on their mortgage” and urged Congress to enact tax reform to reduce corporate tax rates and increase individual tax rates for the wealthy.  Obama also reaffirmed his Administration’s commitment to close oversight of financial institutions and consumer protection.

 

While no further details are available immediately on the President’s refinancing plan, Obama also proposed “a small fee on the largest financial institutions” to “ensure that it won’t add to the deficit.” 

 

On taxes, Obama said taxpayers earning more than $1 million a year should pay at least 30 percent in taxes.  He also supported Senator Tom Coburn’s (R-OK) proposal to prevent millionaires from getting special tax subsidies or deductions. 

 

Obama also announced that he is directing his attorney general “to create a special unit of federal prosecutors and leading state attorneys general to expand our investigations into the abusive lending and packaging of risky mortgages that led to the housing crisis.”  He said “this new unit will hold accountable those who broke the law, speed assistance to homeowners, and help turn the page on an era of recklessness that hurt so many Americans.” 

 

We expect further details on these and other Administration proposals in the coming days and in the President’s FY 2013 Budget, which the Administration said recently it will release February 13, one week later than originally expected.