President Joe Biden, during his State of the Union address, outlined plans to reform the tax system to lower Americans' costs and compel corporations and the wealthy to contribute their fair share.
He underscored the economy's significant improvement under his administration and reiterated commitments to economic populism. Biden proposed ending tax breaks for executive pay over $1 million and provisions favoring pharmaceutical and oil companies.
He also advocated for expanding progressive economic policies like the corporate alternative minimum tax, aiming for corporations to pay at least 21%. Additionally, Biden highlighted efforts to negotiate lower drug prices through Medicare and combat corporate practices that inflate consumer costs, emphasizing his administration's focus on fairness and economic growth amidst challenges in public perception of his economic achievements.
Regarding taxes, Biden's program for a potential upcoming presidential term had the following points:
Reform Tax System: President Biden aims to overhaul the tax system to ensure that corporations and the wealthiest Americans contribute a fair share to the economy.
Eliminate Specific Tax Breaks: Biden's plan includes ending tax breaks for executive compensation over $1 million and tax code advantages that benefit large pharmaceutical and oil companies, as well as owners of private jets.
Increase Corporate Minimum Tax: Biden advocated for raising the corporate alternative minimum tax from 15% to at least 21%, to ensure that large corporations start paying their fair share in taxes, aligning with his vision of a more equitable tax code.
Proposal for a "Billionaire Tax": Biden proposed implementing a "billionaire tax," specifically targeting unrealized income of households with a net worth over $100 million, aiming to address income inequality and fund domestic spending plans through increased revenue from the wealthiest Americans.
The lines are being drawn up between Trump and Biden ahead of their November show-down. Don't forget to read our analysis on what Trump might do to the economy if elected:
