President Biden released his budget on Monday, outlining a plan to cut deficits by $3 trillion over a decade through tax increases for companies and the wealthy. This approach, which has been a central focus of the president’s efforts to create a more equitable economy, contrasts sharply with Republican proposals to extend tax cuts from the Trump era.
The budget includes $5 trillion in additional taxes on corporations and high earners over the next decade. For corporations, this means raising the corporate tax rate to 28 percent from 21 percent, increasing the corporate minimum tax to 21 percent, and quadrupling a surcharge on corporate stock buybacks. The budget also targets executive pay and seeks to eliminate tax breaks for corporate jet purchases.
For the wealthiest individuals, the budget proposes raising the tax rate on capital gains for those earning over $400,000 to 39.6 percent and imposing a 25 percent “billionaire tax” on individuals with wealth exceeding $100 million. The budget also aims to strengthen the Internal Revenue Service, with additional funding to crack down on tax evasion.
Additionally, the budget includes efforts to shore up Social Security and Medicare by making wealthy Americans pay more into the programs. However, many of these proposals are likely to face opposition in Congress, with Republicans already criticizing the budget as “shortsighted” and predicting job losses as a result of the proposed tax increases.
Despite the challenges ahead, President Biden remains committed to his vision of a fairer tax system and a more sustainable economy.
