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Joe Biden will target super rich and corporate America in tonight’s State of the Union address with sweeping tax rises proposing to raise minimum corporate tax from to 21% and 25% minimum tax for billionaires of 25%

  • White House officials said Biden would preview steps that will be part of a proposed 2025 budget to be released next week that aims to reduce the federal budget deficit by $3 trillion while also raising taxes on Americans with a low income.

President Joe Biden is expected to announce Thursday evening during his annual State of the Union address that he is going after corporations and billionaires like Elon Musk and Jeff Bezos, while planning to raise taxes on both to 25 percent.

White House officials said Biden would preview steps that will be part of a proposed 2025 budget to be released next week that aims to reduce the federal budget deficit by $3 trillion while also raising taxes on Americans with a low income.

Most of Biden’s tax proposals have little chance of passage unless Democrats win strong majorities in both chambers of Congress in November, an outcome that polls show is unlikely.

The tax plans are expected to be a core part of Biden’s re-election campaign, in stark contrast to presumptive Republican nominee Donald Trump, whose 2017 Tax Cuts and Jobs Act cut taxes on corporations and the wealthy.

“Republicans in Congress want to cut taxes even further for the wealthy and big corporations while adding more than $3 trillion to the debt,” said Lael Brainard, director of the White House National Economic Council.

“President Biden has made it clear which side he is on.”

White House officials said Biden would preview steps that will be part of a proposed 2025 budget to be released next week that aims to reduce the federal budget deficit by $3 trillion while also raising taxes on Americans with a low income.

The new tax will likely affect the richest people in the US, including Amazon founder Jeff Bezos

The new tax will likely affect the richest people in the US, including Amazon founder Jeff Bezos

Billionaire Elon Musk has been a critic of President Joe Biden for some time

Billionaire Elon Musk has been a critic of President Joe Biden for some time

They include Biden’s earlier calls to raise the corporate tax rate from the current 21 percent to 28 percent, recouping half of the 2017 Republican cut.

Biden now also wants to increase a minimum business tax from 15 percent to 21 percent for companies reporting more than $1 billion in profits, which he secured as part of the 2022 clean energy legislation.

Biden will also call on Congress to approve much stricter limits on business income deductions for executive compensation, capping them at $1 million for each employee.

Current law already prohibits deductions from compensation for CEOs, Chief Financial Officers and other key positions. White House officials said the new proposal would apply to all workers paid more than $1 million and would generate more than $250 billion in new corporate tax revenue over 10 years.

Biden will also pursue business income deductions for use of corporate jets, an area already the target of audits by the Internal Revenue Service.

This includes extending the depreciation period for business jets from five years to seven years, as for commercial aircraft, reducing the annual deduction, an administration official said.

Biden will renew his “billionaire tax” proposal, which is actually significantly below that level. It imposes a minimum tax of 25 percent on income for Americans with wealth over $100 million.

The average American worker would pay about 25 percent in 2022, the OECD reports. White House research found that the wealthiest individuals paid about 8 percent between 2010 and 2018.

Biden will pledge to extend Trump-era tax cuts to those making less than $400,000, will call for restoring a COVID-era expansion of the child tax credit, giving eligible families up to $3,600 a year per child are paid, and will increase a tax credit for low wages. employees.

As consumers continue to grapple with high prices, Biden will also outline steps his administration is taking to reduce “corporate fraud,” including additional “junk” fees, price gouging and smaller package sizes to hide price increases.

The so-called ‘shrinkflation’ was denounced on Monday by Sesame Street muppet Cookie Monster in a widely reported X-post on social media.

Following a move this week to cap late credit card fees at $8, Biden will also call for a crackdown on “exploitative” practices with branded credit cards, including devaluing airline miles and points.