“Republicans have already demonstrated that they are on the side of the one percent and big corporations by attempting to shield wealthy tax evaders and jeopardizing Social Security and Medicare with deficit-busting tax cuts for the wealthy and corporations,” one expert said. “The contrast is incredible.”
While far-right Republicans continue to threaten the global economy unless Congress cuts popular social programs, progressive taxation experts applaud US President Joe Biden’s latest push to invest in “widespread prosperity” by raising taxes on wealthy individuals and corporations.
Biden proposes a 25% minimum tax on the wealthiest 0.01% as part of his fiscal year 2024 budget blueprint, as well as reforms to ensure high-income individuals pay their fair share into the Medicare Hospital Insurance trust fund and repealing 2017 tax cuts and restoring the top tax rate of 39.6% for those earning more than $400,000 per year.
Along with advocating for an increase in the corporate tax rate from 21% to 28%—still far below the previous 35% rate—
Biden: "When we talk about a 28 percent tax rate — Ronald Reagan was doing the 28 percent tax rate, you know, that wacko liberal guy." pic.twitter.com/66cgSNhDsR
— Aaron Rupar (@atrupar) March 10, 2023
Biden also “proposes to reform the international tax system to reduce the incentives to book profits in low-tax jurisdictions, stop corporate inversions to tax havens, and raise the tax rate on U.S. multinationals’ foreign earnings from 10.5% to 21%,” according to a White House fact sheet.
Although many of these proposals are unlikely to be implemented due to the Republican-controlled U.S. House and divided Senate, Groundwork Collaborative executive director Lindsay Owens said Friday that “it’s great to see President Biden leading the charge to increase taxes on billionaires, crack down on massive corporate stock buybacks, and prevent the wealthiest Americans from cheating on their taxes and avoiding paying what they owe.”
“The tax policies outlined in this budget are equitable, popular, and long-term.”
According to Amy Hanauer, executive director of the Institute on Taxation and Economic Policy, “President Biden’s budget proposal presents a bold vision for what tax justice should look like in America.”
“The provisions would generate significant revenue, fund critical priorities, and improve tax equity,” she emphasized. “The revenue-raising measures are laser-focused on taxing extremely wealthy individuals and corporations, and the budget would reduce the deficit while lowering costs for American families, particularly middle and low-income parents.”
Biden Tax Boost Targeting the Rich Called ‘Fair, Popular, and Long Overdue’
“President Biden’s budget clearly shows whose side he’s on: working families struggling with the high cost of healthcare, childcare, housing, and more—not the wealthy elite and their big corporations rolling in dough and avoiding their fair share of taxes,” said Frank Clemente, executive director of Americans for Tax Fairness.
“Republicans have already demonstrated that they are on the side of the one percent and big corporations by attempting to shield wealthy tax evaders and endangering Social Security and Medicare with deficit-busting tax cuts for the wealthy and corporations,” Clemente continued. “The contrast is incredible.”
The House Freedom Caucus said earlier Friday that its 45 members would “consider voting” to raise the US debt limit if their colleagues in Congress abandon some of Biden’s key economic priorities, cut hundreds of billions of dollars in social spending, and limit federal agencies’ future budgets.
Biden responded on Twitter, saying that “extreme MAGA House Republicans are demonstrating what they value: tax breaks for the wealthy.”