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On the eve of the State of the Union address on Tuesday, President Obama has proposed raising $320 billion in new taxes, mainly on wealthy Americans and imposes a fee on large financial institutions.

CBS News reported senior administration officials said the proposals are designed to “raise wages and incomes for middle class families in the new economy” and that they’d “make the system more fair” by closing loopholes that primarily benefit top income-earners. Many Democrats have long sought higher taxes on capital gains, or income derived from investments, to make the tax code more progressive.

The $320 billion dollars the president is seeking over 10 years will be used to finance $225 billion in new spending on the federal spending on community colleges and other targeted tax relief.

CBS News continued to report the estimated $320 billion in new revenue the president is seeking, $210 billion would come from a pair of adjustments to capital gains taxes. The first adjustment would close the so-called “trust fund loophole,” a feature of the tax code that “lets the wealthy pass appreciated assets onto their heirs tax-free,” according to the White House.

Continuing the second adjustment would raise capital gains taxes on the top 1 percent of income earners, currently at 15 percent, to 28 percent — the same level it was at under former President Ronald Reagan, the White House is quick to point out.

The other aspect of the president’s proposal would leverage $110 billion on new fees on financial service firms, with assets of more than $50 billion.  An additional $60 billion will be offered in rebates to states that offer free community college tuition.

“What you’re seeing here is really dedicated middle-class tax relief to really get at that problem of middle-class wage stagnation,” said Harry Stein, director of fiscal policy at the Center for American Progress, a Washington group aligned with Democrats.

“Slapping American small businesses, savers and investors with more tax hikes only negates the benefits of the tax policies that have been successful in helping to expand the economy, promote savings, and create jobs,” Republican Orrin Hatch, the chairman of the Senate Finance Committee, said in a statement Saturday. “The president needs to stop listening to his liberal allies who want to raise taxes at all costs and start working with Congress to fix our broken tax code.”

The president is not proposing anything different then he has proposed in the past, but this time he realizes his proposal are a non-starter but is mainly shaping the political landscape for the 2016 presidential election.

The real issue here will these proposals do anything to help the middle class?

Reuters reported a startling aspect of the president’s polices as it is related to the middle class.

The policies by the Federal Reserve led by Obama appointee Janet Yellen, has pumped trillions in its bond buyback program by keeping interest rates near zero has helped, thus allowing the economy to grow.

But the Fed’s Survey of Consumer Finances shows how uneven the distribution of that stimulus has been. Between 2010 and 2013, as recovery took hold and stock markets soared, the average net worth of families in the top 40 percent of income earners grew. For all others average net worth shrank, declining 19 percent for the middle fifth.

Reuters continued in its reporting, similarly, the average earnings for families in the top 10 percent grew more than 9 percent from 2010 through 2013, while those at other levels stagnated or shrank. For the middle fifth, average earnings fell 4.6 percent.

Over the six years through 2013, the middle fifth’s average annual family earnings fell to $47,243 from $53,008 while their average net worth dropped to $170,066 from $236,525.

The president even stated in his State of the Union Address last year, that the erosion of the middle class is a “Sputnik moment” that should energize the country to out-produce and out-innovate the rest of the world. By last year, the tone was more tempered: “The cold, hard fact is that even in the midst of recovery, too many Americans are working more than ever just to get by – let alone get ahead. And too many still aren’t working at all,” continuing “Our job is to reverse these trends. It won’t happen right away.”

Neither party is doing anything to really help the middle class, the best way to do this is a comprehensive and complete overhaul of the U.S. tax code. With the biggest aspect of this reform, bringing corporate assets home, Microsoft alone has around $80 billion parked overseas.

Unfortunately, what the president is proposing will do nothing to help the middle class, its more inline of growing the federal government further without any thought to our $18 trillion national debt.

Republicans are in the same league as the president as nothing they are proposing will do anything to help the battered middle class.

The country will have to wait until after the 2016 presidential election for any relief.