President Joe Biden is going into Thursday’s State of the Union address with an expanded plan to raise corporate taxes and use the proceeds to trim budget deficits and cut taxes for the middle class.
Quick Read
- Tax Reform Agenda: President Joe Biden is presenting a plan to increase corporate taxes and use the revenue to reduce budget deficits and provide tax relief for the middle class in his State of the Union address.
- Contrast with GOP: Biden aims to highlight differences between his economic policies and Republican proposals, emphasizing opposition to extending Trump-era tax cuts and further corporate tax reductions.
- Specific Measures: The plan includes ending deductions for employee compensation above $1 million, raising the corporate tax rate to 28%, imposing a minimum tax on major corporations, and setting a 25% minimum tax rate for billionaires.
- Medicare Tax Increase: High earners above $400,000 would face higher Medicare taxes to secure the program’s funding.
- Support for Lower-Income Families: Revenues would also fund expansions of the Earned Income Tax Credit and Child Tax Credit, and permanently reduce health insurance premiums under the Affordable Care Act.
- Debt Reduction Goals: Biden’s upcoming budget is expected to propose cutting the national debt by $3 trillion over 10 years, continuing themes from his previous budget proposals.
The Associated Press has the story:
State of the Union: Biden to call for business tax hikes, middle class tax cuts & lower deficits
Newslooks- WASHINGTON (AP) —
President Joe Biden is going into Thursday’s State of the Union address with an expanded plan to raise corporate taxes and use the proceeds to trim budget deficits and cut taxes for the middle class.
The Democratic president in this election year is refining the economic agenda that he’s been pushing since the 2020 presidential race, trying to show that he is addressing voters’ concerns about the cost of living. With Republican control of the House, Biden’s agenda is unlikely to become law and serves as something of a sales pitch to voters.
In a preview of Biden’s remarks, aides including Lael Brainard, director of the White House National Economic Council, said the president would contrast his proposals with Republican plans to extend former President Donald Trump’s expiring tax breaks and further slash corporate tax rates.
Under Biden’s proposal, corporations would no longer be able to deduct the expense of employee pay above $1 million, which could raise $270 billion over 10 years. He also wants to raise the corporate tax rate to 28% from 21%, among other measures. And, as Biden has previously proposed, major companies would be charged a minimum tax rate so that they could not avoid the IRS through accounting maneuvers, deductions and specialized tax breaks.
Billionaires would need to pay a minimum of 25% in federal taxes on their income under his plans. People earning more than $400,000 would also pay higher Medicare taxes to ensure the program’s financial viability.
Biden would use some of those revenues to pay for expansions of the Earned Income Tax Credit and Child Tax Credit, which would help lower-income families. He is also seeking to permanently make health insurance premiums lower for those who receive their medical coverage through the 2010 Affordable Care Act.
Aides said Biden’s forthcoming budget plan would trim the national debt by $3 trillion over 10 years, similar to what he pitched in last year’s budget proposal, which was not approved by Congress.
