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State of the Union: Obama to fight 'wealth inequality' State of the Union: Obama demands spread of wealth
(about 2 hours later)
US President Barack Obama will announce measures to help working families gain from a growing economy, in his annual agenda-setting speech to Congress. US President Barack Obama has declared an end to the financial crisis and pledged economic policies to benefit all Americans, in his annual State of the Union address to Congress.
Mr Obama's strategy, which he describes as "middle-class economics", includes raising taxes for the rich. In a speech devised to appeal to working families, Mr Obama outlined his strategy for "middle-class economics".
Much of what will be in his televised State of the Union address at 2100 EST (0200 GMT) has already been announced. "It's now up to us to choose who we want to be over the next fifteen years," he said.
But the plans are unlikely to make it past a Republican-controlled Congress.But the plans are unlikely to make it past a Republican-controlled Congress.
The speech will include proposals on tax, community college, internet access, cyber-security and sick leave. In a speech which he described as more focused on values than policies, Mr Obama declared America had turned a page after the worst recession since the Depression.
In excerpts released ahead of time, Mr Obama said emerging from recession provided an opportunity for "rising incomes and chances" for everyone. The president said he planned to build on this growth by providing working families with help in the form of sick and maternity leave and affordable child care.
The president will liken the decisions facing the country to when welfare programmes like social security were set up, and the internet first conceived. "Middle-class economic works. Expanding opportunity works. And these politics will continue to work, as long as politics don't get in the way," he said.
"That's what middle-class economics is - the idea that this country does best when everyone gets their fair shot, everyone does their fair share, and everyone plays by the same set of rules." He also pledged that Congress should pass a law to give women the same wages as men for doing the same job. "It's 2015. It's time," he said.
His $320bn (£211bn) tax-raising plan, over 10 years, includes: Mr Obama's speech also included plans to build a competitive economy by improving America's infrastructure and providing free access to community college.
His tax and spending package is unlikely to get Republican approval, however, with some senior members of the party dismissing it as "class warfare". "This plan is your chance to graduate ready for a new economy, without a load of debt," he said.
Their response to the president's 6,000-word speech will come from rising star Joni Ernst, the Iowa senator who shot to fame by burnishing her hog-castrating credentials in a campaign television advert. In a policy which is likely to bring him into direct conflict with the Republican-led Congress, Mr Obama pledged to close tax loopholes on large inheritances, raise capital gains tax on the richest earners from 23.8% to 28% and introduce new fees on US financial firms with assets about $50bn.
Other Obama plans in his speech Some senior members of the Republican party has already dismissed this as "class warfare".
State of the Union spoilers Plans outlined in Obama's speech
Mr Obama urged Congress to pass legislation to better combat cyber-attacks.
"If we don't act, we'll leave our nation and our economy vulnerable," he said.
On foreign policy, Mr Obama said America reserved the "right to act unilaterally" in hunting down terrorists and called on Congress to pass a resolution to authorise the use of force against IS.
But he also stressed that his administration will continue to reject offensive "stereotypes of Muslims".
The president reiterated his belief that the US could negotiate an agreement to prevent Iran gaining nuclear weapons and said he would veto any new sanctions bill which threatens this.
He said his decision to end his America's long-standing policy on Cuba and try something new had the potential to "end a legacy of mistrust in our hemisphere".
Alan Gross, who was recently released after spending five years in a Cuban prison, was among Michelle Obama's guest for the speech.
The Republican response to the president's 6,000-word speech will come from rising star Joni Ernst, the Iowa senator who shot to fame by burnishing her hog-castrating credentials in a campaign television advert.
Ms Ernst is expected to argue Americans have been hurting economically but have not seen solutions from Mr Obama.Ms Ernst is expected to argue Americans have been hurting economically but have not seen solutions from Mr Obama.
Instead, it has been "the same stale mindset that led to failed policies like Obamacare".Instead, it has been "the same stale mindset that led to failed policies like Obamacare".
The senator will call on Mr Obama to work with Republicans on issues they might have common ground - including a trade deal and tax code reform.The senator will call on Mr Obama to work with Republicans on issues they might have common ground - including a trade deal and tax code reform.
"The president has already expressed some support for these kinds of ideas," Ms Ernst is expected to say. "We're calling on him now to co-operate to pass them.""The president has already expressed some support for these kinds of ideas," Ms Ernst is expected to say. "We're calling on him now to co-operate to pass them."
BBC North America editor Jon Sopel says the president's push on policies that are unlikely to pass Congress means there's a potential trap for Republicans.
"Democrats would like nothing more than the Republicans to be perceived as the 'party of no' - rejecting plans to help the 99% of Americans."
Many eyes on Tuesday night will be on the seats around First Lady Michelle Obama, the box which overlooks the floor of the House of Representatives where her husband will deliver his sixth State of the Union speech.
Alongside her will be freed Cuban prisoner Alan Gross, astronaut Scott Kelly and several people who wrote letters to the White House in the last year.