the present is proposing tax hikes on the wealthy, and helping the middle class as a result. if you cannot call in my phone, you can try it on social media. leave a comment on facebook. or send us an email. we look forward to talking to you. here are some of the details laid out in some of the publications the sunday morning. the "washington post" headline __ budget proposal to target the wealthy. all of this started coming out yesterday evening. in his state of the union speech on tuesday, the present will propose raising the capital gains and dividend tax

rates to 20% for high earners, imposing a fee on the liabilities of about 100 big financial institutions. obama will also seek to boost private retirement savings by requiring employees without 401(k)s to make it easier for full and part_time workers to save an individual retirement accounts. this could assist as many as 30 million people. a little bit more __ senior administration officials say the package would highlight the president's desire to help lower and middle class families. new tax critics would help those in need of childcare and households with two earners. we have a little bit more detail and reaction from capitol hill with a finance reporter for the hill. guest: thank you for having me.

host: what has the reaction been so far from the hill? guest: i was thinking last night to some __ talking last night to some staffers, including mitch mcconnell. they said, look this is partisan, it is not to be taken seriously. from the republican standpoint, it faces very little chance __ in fact, no chance __ in passing in the republican_controlled congress. that is because of the way in which the president wants to increase taxes __ something that the democrats have wanted to do for a long time __

raising taxes on the wealthy. it also has impacts on government programs __ you mentioned some of them. republicans told me that this is not the time to be spending government money. they would like us to see not having any more government programs, free up capital. clearly, it is to get the ball rolling from a tax reform perspective. it could be the basis for democrat standpoint. now, republicans have to answer, and maybe they can meet in the middle. certainly getting the ball rolling on tax reform. host: some of the reaction within the piece that our guest wrote in the hill.

a tweet within this piece comes from brendan buck who works with paul ryan. he writes __ it is not a serious plan. we lift families up and grow the economy with a flatter tax code. so, kevin you talk about this as a starting point for debate. you alluded to the republicans possibly coming up with their own plan. what can we look forward to over the next several months? guest: from a tax reform perspective, we can look forward to a couple of things. republicans have been pushing for universal tax reform. they would like to see a code that decreases __ or at least establishes a fixed rate from a foreign perspective. some of the tax rates, they say, are too complicated and driving businesses overseas.

we have talked in the past about a process called corporate inversions, in which companies which their addresses overseas. from a broader perspective, i think republicans want to push back against the notion that they are in favor of the wealthy, and keeping tax breaks for the wealthy. they will have to push back and say, we're trying to simplify this process. last week, we saw the house passed legislation that would tweak parts of the 2010 reform law. they say that this is hurting main streets small businesses. betty is weakening wall street

regulations. you have this fight from democrats __ led by elizabeth warren. republicans will have to fight back on that narrative and say that they are not sticking up for wall street, and they're trying to get the economy moving. many americans feel the recovery has not moved fast enough. host: of course, the state of the union address will probably drown out all other news this week. can you lay out the retreat __ what they are talking about. guest: keystone. the dodd frank issue. we just all republicans meeting

in hershey, and laying out a game plan for the next few weeks in congress. you're right, president obama has a great opportunity this week with the state of the union address. to some extent, he will try to get ahead up on the republican_controlled congress to get his message and policy plan on the next week with his speech on tuesday. host: as always, thank you for your time and insight. busy week ahead. let's get right to calls as we look at a headline in the "new york times" on this __ obama will seek to reduce taxes on the middle class, and challenging the gop. an independent collar is on the line. caller: good morning.

i am 66 years old. i have felt the salt that the republicans have been giving on the middle class and the poor since 1976. i do not think this will help the middle class or the poor. i remember the first assault and 76 when ronald reagan became president. he let 750,000 patients out of the hospital's and took billions of dollars that he could save and gave it to the richest 1% of californians. that set up the plan __ i guess __ for what would happen __ 39 years now. not only do they not take big tax breaks and give the rich, they have always been against the health of americans with things like the keystone

pipeline, saying there is no climate change. america is being so downgraded __ our environment and the assault on the middle class and the poor. it is so obvious. i do not know how much more we can take. host: at me __ let me jump in __ do you see the republican_controlled congress making any ground with the present them? caller: no. you saw mitch mcconnell when he came in and he said that they had one goal, to take the present them out on anything he would say. it's a horrible thing how they have frozen up our government. it's terrible what the republicans are doing. they have stagnated anything we've ever tried to do. we're not moving forward.

we do not have high speed rail, our roads need to be fakes, we need a new electrical grid. they should put them all in jail for it. host: let's hear from a republican caller now. caller: imi the president for wanting to help poor and lower income people. however, i do not think it is fair to raise taxes on the wealthy. i think there should be a gradual dismantling of entitlements. immigration reform should be dealt with under a larger reparations bill for african_americans __ if done right that could benefit all americans. host: a little but more from the post piece __

for the past year and a half, the administration has looked at how much they could trumpet the recovery when so many americans have not felt any change in their own economic outlook. most republicans have long opposed increases in capital gains and many favor of eliminating tax altogether. here is a quote __ the presidents new proposals will be received by protests, adversaries will make predictable claims that the proposals would harm the economy and jobs.

yet, while the proposal to present a major challenge the status quo, they should benefit economic growth, not hinder it. that is robert greenstein from the senate on budget and policy proposals. caller: good morning. this is the craziest thing i have heard of. host: how come? caller: the philosophy seems to be that you raise other people out by taking other people down. there's probably people who are not making a well, that share __ cheer this on. this is dividing our country. not only are we getting divided on racial issues. let's take the various sectors affected one by one __ i want

your listeners to remember one piece of philosophy that i learned a long time ago __ if the business does not have any money, they sure will not give you any money. this tax proposal will take money away from people who could employ people, who could contribute to the economy. there's just not going to be anything left for people to advance with that are employed, they could raise this country up. this is a cover_up for the democratic party's failure to really get anything going of substance in this economy. they have warehoused unemployed people. this president has been giving $1 trillion in stimulus.

he has given $1 trillion in tax increase, and he has not been able to do anything. host: a couple of tweets on this __ one writes that obama is tackling the wealth and income inequality situation is overdue,} another saying, if some of that money should also go towards america's crumbling infrastructure. bill is on the line. caller: i agree with some call saying that this is trying to divide people. i agree with that. i think, and not putting a simpler, flatter tax, but putting a flat tax __ that way everyone would be putting the same in, whether you are wealthy or poor. it would make it easier for the average person. to fill out your returns.

it would make it easier for the irs. it would make things so much simpler. host: that flat tax idea has been out there for a long time. wikipedia has a __ why do you think it has not happened yet? caller: there's too much money from private people, that they're putting into the political process to keep the status quo. maybe it is because our politics is so full of lawyers. looking at things from a financial perspective of what they should do. host: looking at more details of this. the higher capital gains and dividend rates would only apply

to couples earning more than $500,000 per year. officials said that the road to lee though capital gains tax rate with a top rate of 20% has enabled the 400 highest earning taxpayers with $139 million or more of income to pay an average rate of 17%. the proposal to impose a seven basis points see on financial institutions with assets of more than 50 billion will also run smack into opposition from big banks and insurance companies. last week, chris van hollen, proposed a 0.1 surcharge on market transactions. those ideas are out there in congress. john is on the line from new mexico. caller: wonderful show. i like your work on c_span, thank you for c_span.

host: we appreciate your participation. caller: about the tax situation __ i want to paint a little picture in regards to deductions. this is how so many wealthy people pay no taxes whatsoever. their business are in so much money, they have a boat, they have a small farm, and they won't write off every expense. whatever the cost are, they will do that them from their taxes. they took someone out on a boat one time so all the fuel, all the paint, everything they spend on their boat is tax_deductible. so those who make $1 million, they paid zero taxes.

i have a family that makes __ yes, we need to raise taxes on the rich. host: thanks for weighing in. a lot more voices in the next 25 or 30 minutes that we will continue with this question. the president state of the union address comes up on tuesday night. the president used his weekly address to preview the state of the union. [video clip] >> 2014 was the fastest year for job growth since the 1990's. unemployment fell more since 1984.

our combat mission in afghanistan has come to a responsible end. how will we build on our momentum with rising wages and a stronger middle class. i will call on this new congress to join me and find areas where we agreed so we can deliver to the american people. the last six years has required brazilians and sacrifice from all of us. all of us should be proud of the progress that america has made. i hope you will tune in on tuesday to hear about the steps that we can take and seize this moment together. host: again, tuesday night, the state of the union address. we will have the gop response that will be delivered by a newly elected senator from

iowa, joni ernst. we hope you will join in. in the meantime, brian is calling in from massachusetts. caller: please do not hang up on me. one thing __ the second half of last year, the congress gave $600 billion tax cuts to the rich. the walmart family __ they are worth more than 45% of americans. that's all they have been doing, tax cuts to the rich. they're cutting everything. rupert murdoch who owns fox news is a joke. he only wants to spend our money on the military. we should cut our military in half, or more than half.

host: that was brian. next is catherine. caller: my comment is this __ as an american, when i worked, i gladly paid my taxes. i would like to see those who have received what the taxpayer here in the united states has given them in infrastructure to pay the taxes. we are not asking them to do more than what they should. if they are due to pay the taxes, pay them. don't cry, and go crying to your congressman and senator because you do not want to pay her taxes. i believe it was a woman in new york who made the comment in the 1980's saying, rich people don't pay taxes. i believe she was saying the truth. shame on you, rich people.

you made your money here, why don't you want to pay it here? i know people who come back from iran and iraq and afghanistan who are critically injured. these people need help. if you paid your taxes, maybe they would receive it. host: one viewer response to a question asked by another viewer earlier as to why a flat tax has not happened yet. they say __ it has not happened because it does not benefit congress or the donuts. the "new york times" has a piece driving this obama tax plan is the great wage slowdown.

wages and incomes for most americans have been stagnant for 15 years. they rose at a mediocre pace for much of president bush's tenure in the 2000's, before falling sharply during the financial crisis. even as job growth has picked up in recent months, wages haven't grown much more quickly than inflation. as a result, the government's official statistics suggest that the typical american household makes no more than the typical household did in the final years of the 20th century. fran is calling now from florida. caller: i would like to comment on that caller who said that we are trying to raise taxes on the people who could give jobs. i felt like the operative word there was __ could.

that is the whole theory of the trickle_down economics, that they could give jobs. but, they won't. and if they do, they do not want to pay more than the current minimum wage. why are we allowing them to get more and more on the hope that they will give more? i'm retired, but when i was working, i worked with republicans, they were all complaining about the taxes. we would have lunch together and i would say, i do not mind having taxes if it is for the common good. that is what america is supposed to be about, the common good. that is my comment. host: from friend to patricia now in minneapolis.

caller: boy, what a bunch of coveting envious liberals. wouldn't it be helpful to remind people that 48% of americans do not pay any income taxes. the majority is paid by the wealthy. the last thing on earth that we need is a government to take more out of our economy, and give it to a bunch of lazy liberals. host: a couple of facebook comments this morning. pablo writes __ same old story, different tax, different divisiveness. we have karen on the line now from seattle. caller: good morning. i wanted to comment about many

of the things i have been said already. first, i love hearing the fact that he was given $1 trillion for the stimulus when he asked for as much as he did and he did nothing. he's kept the economy going, despite not having a great deal of money. i think obama has been trying and he is still trying. at this point, if i were him, i would be crossing off the x is on the wall. in addition to that, i would say, i'll push as much as i like because what do i have to lose. i think people who watch politics, we will have a good time watching this, and we need to speak out.

anyone who watches, and get our families to speak out. host: do see anything of substance coming? caller: i think it will be the push and shove. it's like the beginning of a football match. or soccer match. host: thanks for your comments this morning. we just heard a part of the presidents weekly address. here is a little bit of the republican address. [video clip] >> as americans, we have not lost our capacity for greatness. we can still overcome the odds. we have seen hard_working americans and is a and transform our economy only to have the president try and take credit for it.

we've seen american families were together in their communities to try and make ends meet __ paycheck to paycheck. despite it all, deep in our hearts, americans still want americans to be great. and we are. i'm joined by a wave of congressman who you sent to congress who believe the same thing. we have the resources to solve our problems and the grid to lead in a dangerous world that looks to us for stability. with your inspiration, this new congress is hard at work. here are four things the house is already voted to do __ listed burden on small businesses so they can hire more of our veterans. repeal obama's absurd 30 hour

per week definition. build the keystone xl pipeline. force bureaucratic agencies to regulate with more honesty. host: congressman steve russell there with the weekly republican address. david is on the line from california now. caller: i think it is about time that america knew the truth. i think the president is looking out for america. i think he has reached back in time and realize that there were other presidents who ran the country. when they ran it, they charged

x amount of dollars for taxes in order to pay the bills. you could start back with when we went into the depression, we raise taxes on the corporate. the president knew what he had to do. when we went into world war i, the korean war, the vietnam war. if you look from 1913 through 1981, you will see taxes were anywhere between 94% and 70%. we never went below that. you look at when ronald reagan came in, he dropped taxes from 70% to 28%. then you pulled up a credit card, and no new taxes are running up every day.

each day that goes by in america, $3.6 billion is added to the debt clock. you look at it __ $3.6 billion is added every day. i have a worked up of this that i've tried to get to congress. i sent it to two senators __ one republican and one democrat. no one wants to speak about this. america, look at the taxes that would charge from 1913 to 1981. you will see that those people knew what they were doing. since then, ronald reagan came in and point blake drop those taxes. this is not me speaking, this is on record in washington. in washington, you have access to this. it almost seems like this is by design. look, 16 presidents from wilson to now.

out of the 16, you got 12 that knew what they are doing and for that ruin this country. you cannot walk away from it. it is point_blank. i can set every one of you this chart to understand how we got $18 trillion into debt. host: thanks, david. some other news out there this sunday morning. the miami herald has a big story on cuba __ waves of change __ is the front page story. that is the miami herald. lots of folks are reporting this morning on the congressional delegation that has gone to cuba. here is a picture from the bbc website. this is a shot of senator leahy.

he is accompanied by senator durbin, sheldon whitehouse, congressman chris van hollen. you can see them all their. coming into the meeting place, van hollen on the left, senator leahy on the screen. they are meeting for a three_day visit to discuss remaining areas of disagreement. the first congressional delegation since president obama announced changes last month. a trade mission will happen,

according to the "new york times." addison is on the line. caller: this is kind of germane to the topic. we're in the football playoffs, i do not think anybody realizes that the national football league does not play taxes on the income. host: how do you know that? caller: that is my understanding from what i've seen in the media. if you break down income in this country, the bottom 60% has approximately 7% of wealth and income combined. if you look at the top 5%, they have about 73%. i do not know how anyone is supposed to run a middle_class economy with that kind of income distribution.

maybe you can explain it, but i do not know anyone who has been able to do that. host: thank you for calling. in his calling __ ann is calling from arizona. caller: good morning. i have a comment in a short reading. the lady that cold and referred to the lazy liberal democrats __ i am 76 years old, i have been a hairdresser for 49 years, i work commission until i put my business. i rented my place of work and pay my estimated taxes. i was never late. i raised two daughters who are lazy democrats that have worked since they are 15 and 16 years

old. i have two granddaughters who are lazy liberal democrats and they have worked since they were 16. i just wanted to let her know that lazy liberal democrats do pay taxes. i just real quick want to redo my birthday card that my youngest daughter sent to me. she says, the democrats took your birthday cake, they sliced it up and gave it to the people who are fortunate enough to have a birthday today. i thank you so much. i do not have cable so i watch "washington journal" on the internet. every morning, i set my alarm. i appreciate you taking my call. host: thank you for getting up early. the show begins at 7:00 am eastern time each day.

another item now in congress has to do with the keystone xl pipeline. the senate has been debating the issue. there will be some votes on amendments tomorrow. you can watch it on c_span 2. senator john hoeven, who whirls the bill, is our "newsmakers" guess today at 10:00 am. this clip runs a couple minutes long. [video clip] >> you are short for votes, are those findable? >> we will see. that is why we are having the open amendment process, to foster bipartisanship, so that we can attract for more votes. if we can't, or plan b would be to bring it back, and attach it to other must pass legislation

__ perhaps an appropriation measure. there is precedent for doing that. the first keystone bill that we wrote, that was passed the first keystone bill that we wrote, that was passed in 2012, we passed it with 73 votes. >> in the president would have to make a decision, correct? >> exactly, that is why we came back and broke the spell. >> the president has been increasingly critical of the pipeline in the past two months. he has been saying that the jobs are temporary, and therefore not as good as perhaps some other broader infrastructure jobs. he has said that it will not lower gasoline prices. we can debate the facts all day. what you make of these negative comments? using it signals that he is getting ready to reject the pipeline?

aand if so, what would congress to at that point? >> we have addressed every one of those criticisms. we have used his own administration's environmental impacts. the reasons, or excuses, that he has given to not approve the project __ it is really hard to understand why he does not make a decision. if he is opposed to it, why we still sitting here six years later? when you have poll after poll showing 65% to 70% from the american public to the project, and we have a bipartisan majority in the house and senate, and every state has approved it, why does he still not make a decision? host: senator john hoeven, a leading player in the keystone xl pipeline bill. he will be our "newsmakers"

guest today. we have edward waiting on the line. he is a democrat. caller: my point that i wanted to call and make was __ governments have never run and right since the beginning of mankind. america has an almost right, there's just one part missing in a checks and balances system. what we need to do to make sure that no matter who we elect an office, we benefit from them as americans is put in place a new system of checks and balances that keeps the house representatives __ you randomly select american citizen voters from each state in the union.

you run them through the same process as jurors to qualify. if it is good enough for justice system, it is good enough for our congress. let them vote on the issues that affect their lives and the direction that the nation goes in. host: that was edward. on a program note, doctor ben carson will be on this program tomorrow. he is featured on the cover of the weekly standard __ taking ben carson seriously. he will be here on this program tomorrow at 7:45 am eastern time to take your calls. one other story and want to point out, it is about an item coming up in the house this week. it says that gop women object

to great cause and 20 week abortion bill. they are now trying to put pressure on the bill that is set to be voted on this week. lawmakers are processing language that requires a rape victim to formally report her rape to police in order to qualify for an exemption. this concern was raised at the closed_door meeting at the gop report. we will see it on the house floor __ i believe during the middle of the week. jermaine is our last call. what do you make of the present __ presidents tax proposal? caller: it says in the bible that we should pay our taxes.

i wish more people would read the word of god and see that he is in control of everything that is going on in america and in the world. we need the wisdom of god. people need to turn back to god and pray for america. don't just complain about america. republicans, democrats, independents, they are all human beings. we all have a desire to live in prosperity and peace. if america is divided against itself, it will fall. we will have terrorism in this country. we will have everything happen because the wrath of god is on abortion and killing babies. people should be on their knees every day in america to keep our rights __ everything that

our forefathers fought for, and all the people died for. our freedom is going down the drain. people are not praying. they are not asking god to help us. host: that was the comment from jermaine from kentucky. coming up next, we will preview the state of the union address what to top political operatives. republican john feehery and jim manley. later, we know terrorism has hit the heart of europe, we will talk to a counterterrorism expert, rick nelson. all weekend long, "american history tv" and book tv are featuring the history of wheeling, west virginia.