President Joe Biden’s budget proposal will include tax increases. What are they?
during a trip to Virginia Beach, Va., last week.
However, people making less than $400,000 a year “will not pay an additional single penny in any tax,” he said.
The budget blueprint will be the first that Biden has submitted to the Republican-controlled House, which is unlikely to go along with his proposal to raise some taxes. Congress is in charge of writing the federal budget, and Biden’s spending plan will become the starting point for negotiations between lawmakers and the White House.
House Republicans say they won’t raise the debt ceiling unless Biden agrees to sharply cut spending.
If Congress doesn’t raise the borrowing limit, the U.S. Treasury will run out of money to pay government bills such as Social Security and military paychecks this summer, according to the nonpartisan Congressional Budget Office.
What is Biden’s billionaires’ tax?
Biden hasn’t offered specifics on his latest plan to raise taxes on the wealthy. But during his State of the Union address in February, he called on Congress to “reward work, not just wealth” and pass his proposal for a billionaires’ minimum tax.
“billionaires’ tax” is likely to mirror a proposal that he offered last year. That plan called for a 20% minimum income tax on multimillionaires and billionaires, which Biden said would lead to a fairer tax code and would prevent the nation’s highest earners from paying a smaller share than middle-class Americans.
The tax would apply to American households with more than $100 million – about 0.01%, representing the 700 richest Americans. It could create an additional $361 billion in tax revenue over the next decade.
billions of dollars in annual profits for 2022 – a year when consumers around the globe faced soaring energy prices. At one point last year, average gas price in the U.S. topped $5 a gallon.
Biden argues energy companies should invest more of that profit into increasing domestic production and keeping prices down. Quadrupling the tax on stock buybacks would encourage long-term investments, Biden said.
Will Biden try to raise the corporate tax rate?
As a presidential candidate, Biden promised to raise taxes not only on the wealthy but also on large corporations. A tax plan pushed by then-President Donald Trump and congressional Republicans in 2017 lowered the corporate tax rate to 21% from 35%, although many companies pay much less.
who was a Democrat at the time but has now become an independent.
The White House would not say whether Biden plans to resurrect that idea in his new budget proposal. But raising the corporate tax rate would be one way to raise money for new programs and help Biden keep his promise to lower the federal deficit by $2 trillion over 10 years.
The chances of such a proposal getting through Congress, however, are even more remote now that Republicans are in charge of the House.
Michael Collins covers the White House. Follow him on Twitter @mcollinsNEWS.
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