Biden proposes a tax raise on billionaires, corporations, and portrays Trump as the candidate of the rich – Technologist

Having failed to sell his economic record to US voters still furious about (past) price hikes, Biden took advantage of the State of the Union address to launch a tax battle. Charging Trump, without naming him, with being the candidate of the wealthiest and wanting to further lower taxes, Biden proposed instead a tax raise on billionaires and corporations.

As in 2021, he gave the most left-wing speech in 40 years for a Democrat, hoping to regain the upper hand. “You know, there are 1,000 billionaires in America. You know what the average federal tax is for these billionaires? They’re making great sacrifices: 8.2 percent. That’s far less than the vast majority of Americans pay. No billionaire should pay a lower federal tax rate than a teacher, a sanitation worker, or a nurse. I propose a minimum tax for billionaires of 25%, just 25%.”

The president and candidate also proposed raising the corporate income tax (CIT) rate from 21% to 28%, and demanded a minimum tax: “In 2020, 55 of America’s largest corporations made $40 billion in profits and paid zero in federal income taxes. Zero. Not anymore. (…) It’s time to raise the corporate minimum tax to at least 21% so every big corporation finally begins to pay their fair share.”

He also wants to reduce CEO salaries, which now reach 300 times that of their employees. ” I also want to end the tax breaks for Big Pharma, Big Oil, private jets, and massive executive pay. (…) End it now.” And he started thinking of what that money could pay for: “Imagine!” Biden repeated several times, citing possible aid for families, children, and senior citizens. With eight months to go before the elections, Biden’s proposals are tantamount to a presidential platform. As the Financial Times writes, “The proposals, (…) are unlikely to pass Congress but are intended to distinguish Biden’s progressive agenda from that of his Republican rival Donald Trump.”

The problem of the middle classes

The reality is quite complex. Biden constantly criticizes Donald Trump’s 2017 tax reform. “The last administration enacted a $2 trillion tax cut, overwhelmingly benefited the top 1 percent – the very wealthy and the biggest corporations – and exploded the federal deficit.” But many of these cuts, which also benefit the middle classes, expire in 2025, and the next president will have to decide with Congress whether to extend all or part of this 2017 reform. “If Congress doesn’t act, taxes will go up for the vast majority of US households,” Howard Gleckman, a researcher at the Urban-Brookings Tax Policy Center, told CNBC. “No political scientist wants to see that happen.” Nor does Joe Biden.

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