Biden Brings Up ‘Billionaire Tax’ During His State of the Union Address

Mentioned several times during the first Biden term but not actively pursued
Aims to reduce record U.S. government debt and differentiate himself from Trump
Includes a plan to deny tax deductions for companies with employees earning more than $1 million

On the evening of the 7th, at 9 p.m. local time, President Joe Biden of the United States announced a massive tax increase plan targeting corporations and the wealthy during his final State of the Union address of his presidency, according to the Financial Times (FT) on the 6th.

According to the report, President Biden’s plan includes raising the minimum corporate tax from 15% to 21% and increasing the minimum tax rate for billionaires to 25%.

The tax increase bill is analyzed as a measure to reduce the US’s record debt. According to the Congressional Budget Office (CBO), the U.S. debt is expected to reach $26.2 trillion by the end of 2023.

There is also an analysis that proposing a bill that is unlikely to pass through Congress is to show a progressive stance different from former President Donald Trump. The dissatisfaction of voters who feel that the Biden administration has not shown anything in terms of economic policy also plays a part. In fact, in a poll conducted by FT last month, 60% of respondents opposed the Biden administration’s economic management, and 49% said finances had been more deteriorated than the time when Biden took office in 2019.

President Biden has previously proposed the “billionaire tax” several times. He has also announced a plan to raise the maximum corporate tax rate from 21% to 28%.

The bill also includes a plan to deny tax deductions for companies with employees earning more than $1 million. Quoting a senior administration official, FT wrote, “It is expected that more than $250 billion in taxes will be collected through this bill.”

In addition, President Biden shared his achievements during his term and presented a blueprint for his second term through this address, including the Inflation Reduction Act (IRA). On the 6th, President Biden posted the schedule of the State of the Union address on social media X (former Twitter) and emphasized, “The State of the Union address is not a simple speech, but my report to you,” and “Our administration has done more in the past three years than what most presidents have done in eight years.” President Biden said, “There is still a lot to do,” mentioning lowering prescription drug prices, reducing student loan debt, protecting abortion rights, and gun control.