President Joe Biden will announce a proposal to dramatically raise taxes on “wealthy” Americans as well as U.S. corporations, reversing what then-President Donald Trump managed to pass during his term.
As reported by the UK’s Daily Mail, Biden is expected to propose raising the tax rate on corporations valued at more than $1 billion from 15 percent to 21 percent. This would be an increase from the 15 percent rate he advocated for earlier in his presidency.
Additionally, he will propose a separate 25 percent tax targeting Americans with a net worth of at least $100 million. However, it’s important to note that an individual’s net worth typically encompasses more than just their liquid assets.
The outlet reported further:
White House officials said the steps were part of a proposed 2025 budget to be released next week, and aimed at reducing the federal deficit by $3 trillion over 10 years.
The tax plans are expected to form a core part of Biden’s re-election campaign, contrasting markedly with presumptive Republican nominee Donald Trump, whose 2017 ‘Tax Cuts and Jobs Act’ slashed taxes on companies and the wealthy.
“Congressional Republicans want to cut taxes even more for the wealthy and big corporations, all while adding more than $3 trillion to the debt,” Lael Brainard, director of the White House’s National Economic Council, said, per the Daily Mail. “President Biden has made clear whose side he’s on.”
During Trump’s term, the GOP-led Congress enacted the most significant tax reform in decades, which involved reducing the corporate tax rate from 35 percent to 21 percent. The objective was to enhance the competitiveness of corporations on a global scale. IRS data indicates that the same tax-cut plan provided benefits to the vast majority of American earners, refuting the erroneous claim by Democrats that it solely favored “the wealthy.”
The Biden plan will also raise corporate rates back up to 28 percent, clawing back half of what Trump and the GOP Congress achieved.
“Biden also will call for Congress to approve far stricter limits on business income deductions for executive pay, limiting them to $1 million for any given employee,” the Daily Mail reported. “Current law already prohibits deductions on compensation for chief executive officers, chief financial officers and other key positions. White House officials said the new proposal would cover all employees paid more than $1 million, and raise over $250 billion in new corporate tax revenue over 10 years.”
