Biden to highlight plans to deny tax breaks to wealthy companies, raise corporate tax rate in State of the Union

President Biden is expected to use his State of the Union address to outline his tax policy goals for his second term, including denying tax breaks to companies with high-paid employees and raising corporate taxes.

The president is scheduled to submit a budget next week, which White House officials say aims to reduce the deficit by $3 trillion over 10 years.

Mr. Biden is expected to unveil a proposal Thursday that would eliminate tax credits for companies paying employees more than $1 million, a move White House officials say would combat the soaring executive pay rates seen in recent years. claims.

He will also highlight plans to raise the corporate tax rate to as much as 28%, up from the 21% level set by former President Donald Trump’s 2017 tax cuts. His plan includes ensuring multibillion-dollar companies pay at least 21% of their income in taxes and imposing a 21% tax rate on multinational corporations.

President Trump’s tax cuts are tied to the 2024 election, and Democrats oppose extending the law in its entirety, while Republicans hope to extend it if they win Congress and the White House.

Biden also announced on Thursday that he is proposing a 25% minimum tax on the wealthiest 0.01% of Americans with assets of $100 million or more, and that it would be expanded to include an additional 18 million children. He plans to emphasize that he wants to restore the child tax credit.

“President Biden will emphasize that reducing costs for working families is a top economic priority,” National Economic Advisor Lael Brainard told reporters.

“The president will also set out a vision to reduce the deficit by making the tax code fairer and making sure big corporations and the wealthy pay their fair share,” she said, adding, “Billionaires pay their fair share.” “We would like to rewrite the tax code to make it so,” he added. Don’t pay them less than school teachers or firefighters, and make sure the wealthy can’t evade taxes. ”

Biden is also expected to reiterate his administration-wide position that there should be no tax increases for Americans making less than $400,000 a year.