President Obama is planning to announce his vision for tax reform during his State of the Union address this upcoming Tuesday night. According to USA Today, he is doing so in an effort to target tax loopholes that benefit the wealthy and offer new tax breaks for the middle class.  

TIME reports that Obama will first try to close the so-called trust-fund loophole, which allows wealthy Americans to skirt some taxes when they pass on their earnings to heirs.  A senior administration officer stated, "Because of the trust fund loophole, hundreds of billions of capital gains go untaxed every year."

The capital gains tax rate will also be raised to 28 percent for high-income households. The additional revenue from this and the closing of the trust-fund loophole will be used to provide $500 tax credit for dual-earner families, expand childcare tax credits, and expand earned income tax credit. It will also help pay for Obama's previously announced initiative to provide two years of free community college for students.

In the long run, it seems that the benefits will outweigh the costs. The Obama administration said that closing loopholes for the wealthy would generate revenue of $320 billion over 10 years. The new tax breaks that Obama plans to propose would cost $235 billion over 10 years.

A White House statement reads that the package is designed "to simplify our complex tax code, make it fairer by eliminating some of the biggest loopholes, and use the savings to responsibly pay for the investments we need to help middle-class families get ahead and grow the economy."

Of course, not everyone is happy. Republican leaders have objected to the tax hikes for the wealthy and excessive business regulations proposed by the Obama administration, saying they would slow business activity. Senate Majority Leader Mitch McConnell (R-Ky) recently said that the problem with past Obama plans is that "you leave out most of American business."

TIME reports that the detailed financial breakdowns of the proposal will come in Obama's budget, which is set to be released on Feb. 2.